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Investing.com - Keefe, Bruyette & Woods raised its price target on Willis Towers Watson (NASDAQ:WTW) to $372.00 from $366.00 on Monday, while maintaining an Outperform rating on the stock.
The investment firm cited confidence in Willis Towers Watson’s ability to sustain above-average organic revenue growth in its Risk & Broking segment, along with continued margin expansion despite less favorable property and casualty pricing conditions.
KBW noted that ongoing share repurchases would contribute to the company’s performance, with potential value-creating mergers and acquisitions focused on brokerage operations expected "sooner or later."
The firm raised its adjusted operating earnings per share estimates for Willis Towers Watson to $16.80 for 2025, $19.60 for 2026, and $22.95 for 2027, up from previous estimates of $16.75, $19.35, and $22.50 respectively.
The new price target of $372 represents a multiple of 19.0 times KBW’s updated 2026 earnings per share estimate, according to the research note following investor meetings with Willis Towers Watson’s CEO Carl Hess, CFO Andrew Krasner, and investor relations head Claudia de la Hoz.
In other recent news, WTW announced a $1.5 billion increase to its share repurchase program, adding to the $200 million remaining from its current repurchase authority. This brings the total available funds for buybacks to $1.7 billion. Additionally, WTW’s Commercial Lines Insurance Pricing Survey reported a 3.8% year-on-year increase in U.S. commercial insurance rates for the second quarter of 2025, marking a slowdown from the 5.3% increase in the first quarter. In staffing developments, Willis, a WTW business, has strengthened its Placement and Portfolio Solutions team with the addition of two senior executives from Marsh. Leadership changes were also announced within Willis’s Global Construction and Surety teams, with Bill Creedon transitioning to the role of Chairman. Furthermore, Evercore ISI has raised its price target for Willis Towers Watson to $373, citing improved earnings per share estimates and better-than-expected margins. These developments reflect WTW’s ongoing strategic initiatives and financial adjustments.
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