Future Challenges For Willis Towers Watson: Analyst Cautions On Downward EPS Revisions Amid Hiring Headwinds
Portfolio Pulse from Lekha Gupta
BMO Capital Market analyst Michael Zaremski has downgraded Willis Towers Watson PLC (NASDAQ:WTW) to Underperform from Market Perform and decreased the price target to $205 from $230. This follows the company's Q2 FY23 EPS miss and FY24 guidance cut. The analyst expects Willis to continue reinvesting most of its expense program’s savings in talent to regain market share, which could lead to downward EPS revisions in the future.
August 08, 2023 | 6:57 pm
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Willis Towers Watson has been downgraded by BMO Capital Market analyst due to Q2 FY23 EPS miss and FY24 guidance cut. The analyst expects future downward EPS revisions due to reinvestment in talent.
The downgrade by BMO Capital Market analyst, coupled with the Q2 FY23 EPS miss and FY24 guidance cut, is likely to negatively impact the stock price of Willis Towers Watson in the short term. The analyst's expectation of future downward EPS revisions due to reinvestment in talent further adds to the bearish outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100