(WSH) Willis Group Holdings Plc – Bear of the Day

We are downgrading our recommendation on Willis Group Holdings, Plc (WSH) to Underperform from Neutral due to the headwind from The Loan Protector business that is expected to weigh on North American results. The soft insurance market is likely to continue.

Additionally, the weakness in the US economy will remain a headwind and restrict any significant top-line growth in the company. Willis also expects to incur pre-tax charges of approximately $160 million in 2011, up from $130 million expected earlier.

Our six-month target price of $31.00 equates to about 11.2x our earnings estimate for 2011. This target price along with an annual dividend of $1.04 implies an expected negative return of about 8% over that period, which is consistent with our Underperform recommendation.

WILLIS GP HLDGS (WSH): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | Financial | Insurance Brokers

RSS feeds: Willis Group Holdings Limited | WSH | Financial | Insurance Brokers |

Other Posts by | RSS Feed for this author