Jefferies Reiterates a 'Buy' on Centene (CNC); Approve of Detailed Action Plans From Investor Day
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Price: $51.66 --0%
Rating Summary:
5 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Rating Summary:
5 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Trade CNC Now!
Jefferies reiterates a 'Buy' on Centene (NYSE: CNC) price target of $42.00 (from $55.00).
Analyst, David Windley, said, "Most of the higher medical costs triggering CNC's 43% guidance cut seem addressable. The pace of improvement on the three key problems will be varied, and investors should expect some volatility along the way. However, we would buy the stock (-45% since April) on the MLR recovery, tailwinds of $2.5bn+ of annualized revenue going live this year, and a robust Medicaid/Dual pipeline."
Windley cites a robust pipeline and shares trading at an attractive multiple, but after the company warning, he does lower FY12 EPS estimate from $2.75 to $1.52 and FY13 from $3.31 to $2.83.
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 $28.20 yesterday, with a 52 week range of $24.26-$50.98.
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Analyst, David Windley, said, "Most of the higher medical costs triggering CNC's 43% guidance cut seem addressable. The pace of improvement on the three key problems will be varied, and investors should expect some volatility along the way. However, we would buy the stock (-45% since April) on the MLR recovery, tailwinds of $2.5bn+ of annualized revenue going live this year, and a robust Medicaid/Dual pipeline."
Windley cites a robust pipeline and shares trading at an attractive multiple, but after the company warning, he does lower FY12 EPS estimate from $2.75 to $1.52 and FY13 from $3.31 to $2.83.
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 $28.20 yesterday, with a 52 week range of $24.26-$50.98.
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