Sold Results 'Baked' Into Managed Care Q2 Expectations (AET) (CI) (MGLN)

Managed Care stocks have solid Q2 earning 'baked' into expectations, thinks Deutsche Bank's Scott Fidel. In his view, performance post-earnings will be tied to management comments on growth.

"The MCO group heads into 2Q13 EPS season with positive stock price momentum as investors are expecting strong quarterly results based on continued subdued health care utilization trends. We expect 2Q13 earnings for MCOs should be largely benign given these muted utilization trends." Said Fidel.

"We expect NT stock performance from here will largely be tethered to the tone of mgmt comments on the prospects for EPS growth and key revenue and margin drivers in 2014. Note that historically, MCO stocks have been seasonally volatile during the 2Q reporting season,” he said.

Heading into Q2 earnings, Deutsche Bank raised its price target on Buy-rated Aetna (NYSE: AET) , CIGNA (NYSE: CI), and Magellan Health (Nasdaq: MGLN).

Fidel also raised price targets on Hold-rated Health Net (NYSE: HNT), UnitedHealth Group (NYSE: UNH), WellPoint (NYSE: WLP), Humana (NYSE: HUM), Universal American (NYSE: UAM), Centene (NYSE: CNC), Molina (NYSE: MOH), WellCare Health Plans (NYSE: WCG), eHealth (Nasdaq: EHTH), and Healthways (Nasdaq: HWAY).

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

Shares of Aetna closed at $63.52 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• First Cash Financial (FCFS) PT Lowered to $140 at TD Cowen
• Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises
• Sage Therapeutics (SAGE) PT Lowered to $18 at Truist Securities