Analyst Comments

Deutsche Bank maintains a 'Hold' rating on HealthSpring (NYSE: HS), price target increased by $1 to $20.

HS issues 2010 EPS guidance at $2.25-2.50 compared to $2.41 in 2009 driven primarily by a stronger top-line outlook. HS is assuming 2010 EPS could range from +4% growth to a decline of -7%. The guidance assumes both the MA and PDP MLRs will rise in 2010 although EPS will be supported by positive enrollment growth in both product lines. The next key catalyst for HS will be the announcement of preliminary 2011 MA rates from CMS. Maintain Hold on Medicare earnings concentration offset by discounted valuation...One of the key upcoming catalysts for Medicare focused MCOs will be the release of preliminary MA rates for 2011 from CMS. There are a range of potential outcomes for the 2011 rates that depend on whether Congress structures a short-term or long-term fix to Medicare provider rate cuts as well as the level of coding intensity adjustments that CMS decides to build into the 2011 rates, among other factors. On the HS call, CEO Fritch surmised that 2011 preliminary rates could come in as high as 4% if the Congress implements a longer-term doc fix, or be down slightly from 2010 if there is only a 2 or 3 month ST extender built into a piece of upcoming legislation. We are currently assuming in our models generally flattish MA rates for 2011, although we see a range of outcomes that could range from +4 to -5%."

To see all the upgrades/downgrades on shares of HS, visit our Analyst Ratings page.

Piper Jaffray has just issued a mid-day research note on Google (Nasdaq: GOOG). In the report, the firm argues that the search-giant has increased its ad coverage for YouTube videos over the last year. Piper Jaffray reiterates its Overweight rating and $700 price target on shares of Google.

After tracking the top 100 videos on YouTube, Piper Jaffray notes that 41% came with ads this year, up from 29% in March of 2009. Further, the firm believes that Google "has expanded the type of videos they will run ads against" and that pre-roll ads are "the best way to monetize video." According to data from Piper, about 8% of the videos in the top 100 contained pre-roll ads. When the firm did this same survey last year, Google did not offer pre-roll ads.

The firm believes that YouTube could generate $735 million in gross sales for Google during 2010 -- about 4% of Google's Owned and Operate site revenue or 2.5% of total gross revenues.

Shares of Google are up 1.2% to $537.90 today.

BofA's Head US Equity Strategist, David Bianco, today lifted his '10 and '11 earnings estimates for the S&P 500 index. The analyst now sees combined earnings for the average reaching $75 this year, up from his prior estimate of $73. For 2011, Bianco raised his earnings estimate from $83 to $85.

Since 2006, earnings across the S&P 500 have fallen by 32% from $87.72 to $59.65 last year. If the S&P 500 did return to the lofty $85 level (like BofA is predicting), year-to-year growth would be around 42% -- the strongest growth rate since 1987.

Credit Suisse maintains a 'Neutral' rating on CenterPoint Energy (NYSE: CNW), raises price target from $25 to $30.

To see all the upgrades/downgrades on shares of CNW, visit our Analyst Ratings page.

CenterPoint Energy, Inc. is a public utility holding company.

Homebuilders are among one of the best performing sectors today as we have several news items which suggest that a bullish sentiment could be returning to the market. The SPDR S&P Homebuilders ETF (NYSE: XHB) is up more than 2.7% today.

• following DR Horton's (NYSE: DHI) surprise Q1 profit last week, traders may be trying to get ahead of any possible earnings upside within the group. DR Horton's results marked the first time a homebuilder has returned to a profit since the beginning of the housing debacle.
  
• in an upgrade of Home Depot (NYSE: HD) this morning, Morgan Stanley predicted that the housing market bottom is now in. Although the firm did not comment on any specific homebuilders, Home Depot and homebuilding certainly go hand-in-hand.
  
• FBR Research issued a note this morning considering market data which suggests that lumber price increases are accelerating. While such data may seem bearish at first glance (higher prices = higher costs and slimmer margins), traders may be viewing the metric as a signal that demand for construction goods is beginning to strengthen.

• Pulte Homes (NYSE: PHM) up 3.9% to $11.30
  
• DR Horton up 3.4% to $13.10
  
• Toll (NYSE: TOL) up 2.4% to $19.09
  
• Lennar (NYSE: LEN) up 6.3% to $15.64
  
• KB Home (NYSE: KBH) up 4% to $15.52
  
• Ryland (NYSE: RYL) up 3.3% to $22.89
  
• Meritage Homes (NYSE: MTH) up 4% To $21.96
  
• Standard Pacific (NYSE: SPF) up 6% to $3.86