Willis Towers Watson To See Short-Term Success Amid Defined Benefit Plan Shifts - Analyst Upgrades Stock
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst Michael Zaremski upgraded Willis Towers Watson PLC (NASDAQ:WTW) to Market Perform from Underperform, maintaining a target price of $298. The company reported Q4 adjusted EPS of $7.44, surpassing consensus but slightly missed sales expectations. Zaremski predicts Willis Towers' Risk & Broking segment will continue outperforming consensus in organic growth through the first half of FY24. Despite a shrinking market for defined benefit plans, Willis is expected to benefit from increased 'buy-out/in' activity. The analyst forecasts adjusted EPS of $16.87 in FY24 and $20.39 in FY25. WTW shares slightly dropped to $271.84.
February 12, 2024 | 6:34 pm
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Willis Towers Watson upgraded to Market Perform by BMO with a target price of $298. Q4 earnings beat expectations, and the company is poised for strong growth in its Risk & Broking segment. Despite a shrinking market for defined benefit plans, the company's outlook is positive with adjusted EPS forecasts of $16.87 in FY24 and $20.39 in FY25.
The upgrade by BMO Capital Markets, coupled with a strong Q4 earnings report and positive growth forecasts, suggests a bullish outlook for WTW in the short term. The company's strategic position in the defined benefit plan administration business and expected organic growth in its Risk & Broking segment are key drivers. Despite the shrinking market for defined benefit plans, the anticipated increase in 'buy-out/in' activity could mitigate risks and support growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100