WTW - Willis Towers Watson raised to Buy at Goldman on turnaround efforts

• Willis Towers Watson ( NASDAQ: WTW ) stock climbed 2.1% in Monday premarket trading after Goldman Sachs upgraded shares of the insurance broker to Buy from Neutral, citing "strong progress" on its turnaround initiatives.
• In addition, Goldman expects WTW ( WTW ) fundamentals to improve materially, "coinciding with abating tailwinds for more concentrated P&C and commission oriented brokers, particularly in the back half of 2023 and into 2024," according to a note written to clients.
• Overall progress, though, is expected to be "lumpy," Goldman said, while noting "multiple expansion is not a driver of our upside despite data suggesting it is warranted based on our estimates."
• The Buy rating disagrees with the Quant system rating of Hold and converges with the average Wall Street analyst rating of Buy.
• Seeking Alpha contributor Stephen Simpson earlier in February reckoned WTW's discount was too large following stronger-than-expected Q4 earnings .

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