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UPDATE: Deutsche Bank Raises PT on Towers Watson & Co. on Extend Health

Related TW
UPDATE: JP Morgan Upgrades Towers Watson Following Impressive 2Q14 Results
Earnings Scheduled For February 6, 2014

In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Towers Watson & Co. (NYSE: TW), and raised the price target from $70.00 to $80.00.

In the report, Poole noted, “Raising price target from $70 to $80 to account for Extend Health. While yesterday's call did not provide any updated assumptions for the Exchange Solutions division, the big takeaway for us was how well integrated it is with the rest of Towers Watson, particularly Health & Group Benefits and the Technology & Admin Solutions divisions. To account for the high growth of Extend Health, we are raising our target PE multiple on TW from 13x to 14x. We assume an unaggressive 12.5x multiple on the legacy TW business and 30x (1x sales growth) on Extend Health.”

Towers Watson & Co. closed on Tuesday at $72.90.

Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings


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