Wed. Oct 27th, 2021

Global consulting, brokerage and solutions company Willis Towers Watson (WLTW) reported good second-quarter results, driven by increased consulting, new business generation, strong renewals and improving the global economy. Shares rose 4.4% to close at $ 212.94 on August 3rd.

Adjusted earnings for the quarter stood at $ 2.66 per share, 48% more than the previous year’s period and exceeded analysts ’estimates of $ 2 per share. (See Willis Towers Watson stock charts at TipRanks)

In addition, revenue grew 8% year-over-year to $ 2.292 billion and exceeded the street estimate of $ 2.21 million. Throughout the year 2021, the company has guided revenue growth by an average digit.

Encouraging John Haley, the company’s CEO, said: “We are well positioned to compete vigorously and independently among our businesses around the world and will continue to innovate and adapt to the needs of evolving customers.”

Simultaneously with the release of earnings, the company announced a 13% increase in the quarterly cash dividend to $ 0.80 per common share.

Following the release of second-quarter earnings, Wells Fargo analyst Elyse Greenspan assigned a buy rating with a target price of $ 266, implying 24.9% upside potential at current levels.

Greenspan said: “While we recognize that there is some uncertainty (loss of talent, purchase of Willis Re, succession of CEO), we believe all of this is taken into account where stocks are quoted today … We believe that valuation of the shares should reduce the gap with its peers that Willis executes as an autonomous entity after removing the merger with AON “.

In addition, the analyst believes that the insurance brokerage sector will gain thanks to the strong economic environment and favorable prices of Property and Accident Insurance (P&C), which should boost WLTW revenue growth in 2021.

The Wall Street community is cautiously optimistic about stocks with a moderate buy consensus rating, based on 4 purchases versus 4 withholdings. Willis Towers Watson’s average price of $ 255.50 implies 20% upside potential at current levels.

The TipRanks asset investor tool shows that investors currently have a very positive position with respect to Willis Towers Watson, with 23.1% of the portfolios followed by TipRanks increasing their exposure to WLTW shares during the last 7 days.

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