UPDATE: Deutsche Bank Upgrades Towers Watson on Long-Term Growth Prospects
In a report published Monday, Deutsche Bank analyst Paul Ginocchio upgraded the rating on Towers Watson & Co. (NYSE: TW) from Hold to Buy, and raised the price target from $93.00 to $125.00.
In the report, Deutsche Bank noted, “We are upgrading TW from a Hold to a Buy due to the very strong growth suggested by our new long-term Healthcare Exchange market model. We had previously underestimated how big this division could be in 4-5 years. We have also updated our near term forecasts to incorporate guidance from Friday's analyst day and the disposal of Reinsurance Brokerage. Our FY14E EPS rises 3% from $5.63 to $5.79. Our FY15E EPS declines 1% due to the disposal (FY14E did not decline due to the lower tax rate).”
Towers Watson & Co. closed on Friday at $102.99.
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