Wunderlich Securities Reiterates Buy Rating On Tower Group (TWGP)

In a research report released this morning, analysts at Wunderlich Securities reiterated their Buy rating on Tower Group TWGP prior the the company's earnings report on Monday. They anticipate TWGP will report 2Q10 EPS of $0.55 compared to $0.73 in the year ago period. The analysts wrote, "We believe top-line growth will be strong, with net earned premiums growth of 23% year-over-year to $282 million." They have a price target of $27 on the shares. They anticipate book value will increase by 16.4% to $24.36. Currently the stocks trades at a discount to book, and Wunderlich's target price implies a valuation of 1 times book.