Barclays on U.S. Health Care-Managed Care: Medicaid Protest to Help Molina (MOH) and Centene (CNC)
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Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Barclays on U.S. Health Care-Managed Care: Medicaid Protest to Help Molina and Centene
Back in April, Molina (NYSE: MOH) and Centene (NYSE: CNC) protested awarded Medicaid business in Ohio, which was originally given to Aetna (NYSE: AET) and Meridian. However, last night, the State of Ohio announced its final awards (that go into effect in 2013).
Analyst, Joshua R. Raskin, said, "Importantly, Centene and Molina have retained the Ohio award, which represents a material portion of business for 2013...For Centene: we estimate that the award adds an incremental $0.30 in business to our estimates...For Molina: we estimate that the award adds an incremental $0.40 in business to our estimates."
Barclays raises FY13 EPS estimates on MOH from $1.30 to $1.70 and raises PT from $21 to $24. (note - shares are up about $5 (+28%) to $22.75.
Barclays also raises FY13 EPS on CNC from $2.90 to $3.20, but maintains the $56 price target. (note - shares are up $3 (+9%) to almost $36/share.
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Back in April, Molina (NYSE: MOH) and Centene (NYSE: CNC) protested awarded Medicaid business in Ohio, which was originally given to Aetna (NYSE: AET) and Meridian. However, last night, the State of Ohio announced its final awards (that go into effect in 2013).
Analyst, Joshua R. Raskin, said, "Importantly, Centene and Molina have retained the Ohio award, which represents a material portion of business for 2013...For Centene: we estimate that the award adds an incremental $0.30 in business to our estimates...For Molina: we estimate that the award adds an incremental $0.40 in business to our estimates."
Barclays raises FY13 EPS estimates on MOH from $1.30 to $1.70 and raises PT from $21 to $24. (note - shares are up about $5 (+28%) to $22.75.
Barclays also raises FY13 EPS on CNC from $2.90 to $3.20, but maintains the $56 price target. (note - shares are up $3 (+9%) to almost $36/share.
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