FBR Capital Downgrades Tower Group (TWGP) to Market Perform After Further Financial Report Delay

September 18, 2013 6:46 AM EDT
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Price: $2.23 --0%

Rating Summary:
    2 Buy, 5 Hold, 0 Sell

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    Up: 30 | Down: 30 | New: 23
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FBR Capital downgraded Tower Group (NASDAQ: TWGP) from Outperform to Market Perform with a price target of $17.00 (from $22.00) on further financials delay.

Analyst Randy Binner notes, "After the close on September 17, 2013, Tower put out a press release further delaying its 2Q13 results. The company did not affirm its previous EPS guidance for 2Q13 of ($0.85) to $0.15. Our conclusion thus is that the reserve charge, which had been estimated at $60 million to $110 million pretax, could be higher. Net reserves are ~$1.5 billion, so a charge that could be greater than 7% of reserves, combined with a charge of ~5% of reserves in 2012, puts the company in a weaker capital position."

For an analyst ratings summary and ratings history on Tower Group click here. For more ratings news on Tower Group click here.

Shares of Tower Group closed at $13.86 yesterday.

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