Willis Towers Watson (WTW) PT Raised to $345 at Roth/MKM

Roth/MKM analyst Harry Fong raised the price target on Willis Towers Watson (NASDAQ: WTW) to $345.00 (from $315.00) while maintaining a Buy rating.

The analyst comments "WTW announced an agreement to sell its Tranzact business to GTCR, a private equity firm, for $632.4 million. We believe the decision to sell this business makes sense. We maintain our Buy rating and increase our price target to $345 from $315 based on a multiple of about 18.4x our 2025 expected EPS. In our opinion, Willis remains the best-value P&C broker. We are not changing our adjusted earnings estimates for the charge as we believe the charge will be excluded from that number. It will be in the net earnings number. CEO Carl Hess said regarding the transaction, “With the sale of Tranzact, we are exiting this direct-to-consumer market and accelerating our progress toward our long-term free cash flow margin goals.” As we have said several times, we believe the management of WTW knows what it needs to do to enhance the value of its shares. This transaction, in our view, is clearly in alignment with its longer-term goals."

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