UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Willis Group Holdings PLC on Solid Organic Growth, Lingering Margin Concerns

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Willis Group Holdings PLC WSH, and raised the price target from $38.00 to $42.00. In the report, Deutsche Bank noted, “Organic growth solid in 3Q13, but margin concerns linger. 3Q13 organic growth of 5.7% came in ahead of our 3.9%, as all three operating segments met or exceed expectations. However, Willis intends to continue increasing headcount as part of an effort to help drive further organic growth. Despite management's medium-term goal to drive revenue growth 70bps above expense growth, we believe that in the near-term there is risk of margin erosion as the push for top-line takes precedent. We remain on the sidelines as we wait for clarity on how margins are impacted under Casserley's early leadership.” Willis Group Holdings PLC closed on Thursday at $79.08.