UPDATE: Bank of America Downgrades Willis Group Holdings PLC on Reduced Margin Expectation

In a report published Wednesday, Bank of America analyst Jay A. Cohen downgraded the rating on Willis Group Holdings PLC WSH from Buy to Neutral, but reiterated the $47.00 price target. In the report, Bank of America noted, “Willis reported 3Q13 EPS of $0.19 per share, $0.02 ahead of our estimate and a penny below consensus. A lower-than-expected tax rate helped by $0.01 per share. The other penny came from a lower loss in earnings affiliates. The operating margin was below our estimate causing us to re-examine our margin assumption going forward. Margins were below our forecast and we are reducing our margin assumption for 2014 and 2015. We are still building in improvement in the margin however, our previous numbers now appear too optimistic. Our estimates for the next two years are coming down by a dime each to $2.95 and $3.35, respectively. Our 2013 estimate increases mostly due to the reported beat in the 3Q.” Willis Group Holdings PLC closed on Tuesday at $46.00.