Jefferies Upgrades Magellan Health Services (MGLN) to Buy

Jefferies upgraded Magellan Health Services (NASDAQ: MGLN) from Hold to Buy with a price target of $78.00 (from $64.00), citing a path to 20% EPS growth.

Analyst David Styblo commented, "We are upgrading to Buy and raising our PT to $78 (25% upside). Since initiating two years ago, we have been patiently waiting for improved revenue visibility on MGLN's two growth initiatives and a better risk/reward profile. The 14% pullback gives investors an attractive entry. FCF is robust and our SOTP analysis suggests most of the company is valued at 3-5x EBITDA. We estimate MGLN is worth ~$100 (60% upside) in 2-3 years if management executes."

While upgrading the stock, the firm cut FY 2015 EPS from $2.45 to $1.94 and FY 2016 EPS from $3.14 to $2.99.

For an analyst ratings summary and ratings history on Magellan Health Services click here. For more ratings news on Magellan Health Services click here.

Shares of Magellan Health Services closed at $62.13 yesterday.

You May Also Be Interested In

• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• HSBC Downgrades Anglo American Platinum Limited (AMS:SJ) (ANGPY) to Reduce
• UBS Downgrades Hino Motors Ltd. (7205:JP) (HINOY) to Neutral