Citigroup Reiterates Buy Rating, $39 PT on Willis Group Holdings
In a report published Friday, Citigroup reiterated its Buy rating and $39.00 price target on Willis Group Holdings Ltd. (NYSE: WSH)
Citigroup noted, “We recently met with CEO Joe Plumeri and CFO Mike Neborak. They continue to emphasize that the difficulties experienced in the NA segment are coming to a close. Ultimately, the lapping of the large issues combined with a revived dedication to pipelines should stimulate NA organic growth. If this growth is achieved, we anticipate it will translate to a return of EPS growth. Plumeri declared the NA pipeline is robust, with a pipeline ratio near 3-to-1 (we suspect it fell below 1-to-1 when all attention was on digesting HRH). This ratio reflects expected new business (pipeline revenue times the historical conversion rate of ~30%) to planned new business. As NA has been a several year drag on overall growth, realizing these pipeline expectations should help put the company back on course.”
Willis Group Holdings Ltd. closed on Thursday at $36.24.
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