Jefferies Cuts Price Target on Magellan Health (MGLN) to $76; Reiterates Buy
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Jefferies reiterated a Buy rating on Magellan Health Services (NASDAQ: MGLN), and cut the price target to $76.00 (from $86.00). Investors are confused by the 25% meltdown since the company released its 2Q results announced in late July. Investors are also concerned with the company's guidance for the 2H.
Analyst David Styblo commented, "We believe MGLN is significantly undervalued and see upside of 40%. The 25% slide since late July is largely unwarranted in our view. The biggest concern seems to be a steeper than usual 2H earnings ramp. Our bridge brings transparency to that and shows why we believe MGLN will achieve guidance. Additionally, our SOTP analysis suggests investors are getting the Healthcare business (~45% of earnings) for <$5/share."
Shares of Magellan Health Services closed at $53.53 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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