Joshua Shanker, an analyst from Bank of America Securities, reiterated the Hold rating on Willis Towers Watson. The associated price target remains the same with $325.00.
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Joshua Shanker has given his Hold rating due to a combination of factors surrounding Willis Towers Watson’s recent business activities and market positioning. The company’s acquisition of Newfront is expected to enhance its presence in the US middle market and improve its technological capabilities, particularly in AI, which could help defend against potential disruptions from AI-driven insurance solutions. However, this acquisition also brings a lower margin profile, which has led to a slight decrease in projected operating and EBITDA margins for 2026.
Additionally, while the acquisition is anticipated to contribute to revenue growth, increased operating and interest expenses are expected to offset these gains, resulting in only a marginal change in EPS estimates for the coming years. The current valuation of the stock, with a price objective of $325, is seen as appropriately reflecting the company’s operational outlook. Therefore, Shanker maintains a Neutral stance, suggesting that the stock is fairly valued at its current price level.
According to TipRanks, Shanker is a 5-star analyst with an average return of 8.1% and a 60.72% success rate. Shanker covers the Financial sector, focusing on stocks such as Progressive, Brown & Brown, and Marsh & Mclennan Companies.