Jefferies upgrades WTW to Buy on ‘beat-and-raise story’

Jefferies analyst Yaron Kinar last night upgraded WTW (WTW) to Buy from Hold with a price target of $382, up from $352. The firm’s estimates remain above the Street for 2025 and 2026, largely due to better margins, as it does not believe consensus accurately reflects the Tranzact disposition in Health, Wealth and Career and the positive impact from scale and efficiencies in Risk and Broking. This “should drive a beat-and-raise story,” the analyst tells investors in a research note. As the company narrows the free cash flow margin gap to peers on structural changes and margin improvement, Jefferies expects the stock’s valuation gap to narrow as well.