Wunderlich Securities Reiterates Tower Group Buy, $32 PT (TWGP)

Wunderlich Securities reiterated its Tower Group TWGP Buy rating and $32 price target in a research report published today. In the report, Wunderlich Securities states, "The company's guidance reflects the following factors: more conservative loss pick for existing business; higher expense ratio for using OneBeacon systems longer than originally anticipated; recognition of DAC charges six to 12 months earlier than its peers; and lower new-money yield of 4%. We believe the conservatism reflects the company's new approach to under promising and over delivering. In addition, in our opinion, the higher loss picks are not an indication of poor underwriting." Shares of Tower Group closed Tuesday at $23.76, down 12.59% from Monday's market close.