UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Towers Watson

In a report published Monday, Deutsche Bank reiterated its Buy rating on Towers Watson & Co. TW, but lowered its price target from $67.00 to $65.00. Deutsche Bank noted, “Despite the recent uptick in US unemployment and growing macroeconomic concerns, recruiting skilled labor (especially IT professionals) and executive talent continues to be a challenge for many corporations. Increased employee churn drives demand for TW's Talent & Rewards division. High corporate margins, which US companies are enjoying currently, also drives demand for benefit's and retirement projects. The Supreme Court decision to uphold US health care reform is prompting both employers and states to prepare for exchanged based healthcare plans, thereby increasing healthcare consulting demand. These macro drivers should continue to drive mid-single digit revenue growth for TW and we believe, increases to consensus expectations. Strong recurring revenues and an attractive valuation are why we rate TW a Buy.” Towers Watson & Co. closed on Friday at $53.89.