Jefferies Downgrades Centene (CNC) to Hold, Stock Likely to Tread Water

December 18, 2012 7:00 AM EST Send to a Friend
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Price: $63.25 +1.56%

Rating Summary:
    10 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 19 | New: 16
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Jefferies downgraded Centene (NYSE: CNC) from Buy to Hold with a price target of $41.00 (from $46.00) saying the stock is likely to tread water for most of 2013.

The firm comments, "We are cutting our 2013E EPS by nearly 10%, reducing our PT to $41 from $46, and downgrading to Hold following CNC's Investor Day last Friday. Despite the stock's decline, we still see risk in the initial 2013 EPS guidance, which makes several optimistic assumptions. Those risks include TX, KY, flu season, and Duals contribution. With the stock at 15x 2013E EPS, we believe it trades sideways until at least Fall 2013."

The firm cut Q4 EPS from $0.74 to $0.46, FY12 $1.50 to $1.02 and FY13 from $2.95 to $2.69.

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

Shares of Centene closed at $42.01 yesterday.

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