Wunderlich Securities Comments on Tower Group's Q1 Results (TWGP)

Wunderlich Securities commented on Tower Group's TWGP Q1 results. In a research report published today, Wunderlich stressed its optimism after Tower announced better than expected Q1 results. In the report, Wunderlich states, "Tower Group, Inc. (TWGP) exceeded our EPS expectation for 1Q11. Operating EPS in 1Q11 increased 69% to $0.49 compared to $0.29 a year ago; our $0.46 estimate was in line with the consensus. The beat was primarily due to lower weather-related losses and higher investment income than we had anticipated. TWGP also announced a 50% increase to the dividend, resulting in a dividend yield of 3.35% currently. Following a series of challenging quarterly results, we believe TWGP's ability to exceed expectations in 1Q11 and reiterate EPS guidance of $2.70-$2.90 for 2011 improves its credibility with investors." Wunderlich currently has a Buy rating and price target of $32 on its shares. In yesterday's trading, Tower added 0.72% to its value to close the day at $22.30.