BMO Capital analyst Michael Zaremski reiterated a Hold rating on Willis Towers Watson yesterday and set a price target of $330.00.
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Michael Zaremski has given his Hold rating due to a combination of factors influencing Willis Towers Watson’s current financial performance and future outlook. The company reported slightly better-than-expected earnings per share and demonstrated strong free cash flow margins, partly due to the divestiture of Tranzact and margin expansion. However, despite these positive results, the company’s guidance for buybacks and organic growth remains unchanged, suggesting limited upside potential in the near term.
Additionally, while the Risk & Broking segment showed promising organic growth, the overall revenue growth was stagnant, and there were mixed results across different business segments. The company’s strategic talent acquisitions have been costly, and while they may support future growth, they also introduce financial risks. These factors contribute to a cautious outlook, justifying the Hold rating as the market continues to evaluate the company’s ability to sustain its current performance levels.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $345.00 price target.
WTW’s price has also changed slightly for the past six months – from $307.800 to $317.000, which is a 2.99% increase.