UPDATE: Keefe, Bruyette & Woods Upgrades Tower Group International Ltd. to Market Perform, Raises PT on Announced Merger Agreement Amendment

In a report published Friday, Keefe, Bruyette & Woods analyst Robert Farnam upgraded the rating on Tower Group International Ltd. TWGP from Underperform to Market Perform, and raised the price target to $2.50. In the report, Keefe, Bruyette & Woods noted, “Following the announcement that the merger agreement between Tower and ACP Re was amended, we are raising our target price for Tower to $2.50 (the revised merger consideration per TWGP common share) and raising our rating to Market Perform from Underperform. While we were surprised the revised merger consideration was not lower (it's still a healthy 1.5 times current book), the amendment at least settles the uncertainty. Also, given the other changes to the merger agreement, we are much more confident the deal will close.” Tower Group International Ltd. closed on Thursday at $2.31.