Anthem (ANTM): DOJ Settlement Still Unlikely - FBR

August 15, 2016 6:58 AM EDT
Get Alerts ANTM Hot Sheet
Price: $123.50 -0.43%

Rating Summary:
    5 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
Trade ANTM Now!
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.

FBR Capital analyst, Chris Meekins, believes the news report implying an increased likelihood of a settlement between the Department of Justice (DOJ) and Anthem (ANTM) may have created confusion among investors about what actually occurred at the August 12 hearing. After reviewing the transcript, he believes that nothing in the hearing stated that a settlement was under active consideration.

The analyst notes that the DOJ could not reach a settlement with Aetna and Humana despite "the complaint that it filed only involving two markets and divestitures being easier to find. The idea that the DOJ will find a settlement in a case with a complaint that involves four markets when the DOJ has made clear the general structure that it would require—and ANTM did not even attempt a proposal that would meet that structure during the investigation stage". He believes this makes a settlement extremely unlikely before the trial date of November 21, 2016.

Market Perform Anthem (NYSE: ANTM) price target of $155.00

For an analyst ratings summary and ratings history on Anthem click here. For more ratings news on Anthem click here.

Shares of Anthem closed at $130.19 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Litigation

Add Your Comment