UPDATE: Goldman Sachs Initiates Willis Group Holdings at Neutral

Goldman Sachs initiated coverage on Willis Group Holdings

with a Neutral rating and a $39 price target. Goldman Sachs said, "The stock has underperformed YTD following weak results earlier in the year, the withdrawal of guidance and a lack of visibility into the pace of margin expansion. Valuation appropriately reflects this uncertain outlook and we expect continued volatility around earnings for the next 2-3 quarters. For the stock to work, WSH needs to demonstrate it can execute on growing top line without adding incremental expenses. Additional uncertainty stems from upcoming CEO succession (current CEO Joe Plumeri is expected to retire in 2013), more limited financial flexibility due to higher debt leverage, and pace of international growth." Willis Group Holdings closed at $36.52 on Thursday.