UPDATE: Stifel Downgrades Towers Watson & Company to Hold, Removes PT Following Strong F4Q13 Report

In a report published Thursday, Stifel analyst Steven Shui downgraded the rating on

from Buy to Hold, and removed the $84.00 price target. In the report, Stifel noted, “TW posted a strong F4Q13, and we are reducing our CY14 estimates very modestly, but we are lowering our rating on the shares of TW from Buy to Hold since the shares are close to our prior $84 target price, and we just don't see enough upside potential over the next 12 months to continue to recommend them at this time. We believe fair value to be about $86-$89 a share, or 14.4x (S&P 500 market multiple) our CY14 EPS estimate of $5.96 ($86 fair value on our current estimate, $89 if we assume much higher share repurchase activity). We were recommending the stock because it was cheap, with a great management team and a story around the Exchange business. Even after yesterday's 5.4% decline (versus S&P 500 decline of 0.5%), at 13.7x CY14 EPS, valuation is close to a market multiple.” Towers Watson & Company closed on Wednesday at $82.40.