Analyst Michael Zaremski of BMO Capital maintained a Hold rating on Willis Towers Watson (WTW – Research Report), retaining the price target of $320.00.
Michael Zaremski has given his Hold rating due to a combination of factors influencing Willis Towers Watson’s performance. The company’s organic growth of 5% was in line with expectations, and while the adjusted operating margin exceeded forecasts, the earnings per share fell short. This shortfall was attributed to factors such as the inclusion of Tranzact revenues in consensus estimates, foreign exchange challenges, and a higher tax rate.
Additionally, the free cash flow was negative, missing consensus expectations, although there were some positive year-over-year changes excluding Tranzact. The Health, Wealth, and Career segment showed weaker growth than anticipated, particularly in the Career and Wealth areas. Despite these challenges, the Risk & Broking segment showed promising growth, suggesting potential for future performance. These mixed results contributed to the decision to maintain a Hold rating.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $315.00 price target.
Based on the recent corporate insider activity of 119 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WTW in relation to earlier this year.