Wunderlich Securities Reiterates Buy Rating, $32 PT On TWGP

Wunderlich Securities is reiterating its $32 PT and Buy rating on shares of Tower Group Inc. TWGP.

“[We] recently conducted a conference call with the management of Tower Group, Inc. (TWGP),” Wunderlich Securities writes. “Management reiterated the company's strategy of specialization and diversification with a focus on niche market opportunities.

“In addition, CEO Michael Lee addressed concerns over the increase in loss picks that accompanied TWGP's EPS guidance for 2011 of $2.70 to $2.90. Our EPS estimates remain $2.80 for 2011 and $3.25 for 2012. Our estimates reflect the higher loss picks and may prove conservative. We believe TWGP will gain credibility and an expanded valuation as the company achieves results that are in line with expectations.”

Tower Group Inc. closed at $23.63.