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. 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.