Wedbush Upgrades Coventry Health Care (CVH) to Neutral; Range Bound with No Further Bids

August 21, 2012 8:10 AM EDT
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Price: $49.99 --0%

Rating Summary:
    1 Buy, 15 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Wedbush upgraded Coventry Health Care (NYSE: CVH) from Underperform to Neutral with a price target of $42.00 (from $35.00).

Analyst, Sarah James, said, "The $7.3B purchase price screens as relatively low on a per-member sum-ofthe-parts basis, however we do not anticipate a multiple bid scenario. We estimate Coventry could be worth $5.6-10.2B based on a sum-of-parts analysis that is conservative as it does not account for excess capital at the subsidiary level or the value of the workers’ compensation business."

"We continue to see challenges to the commercial risk market from a declining pricing cycle and rising utilization trends; however we see significant synergies and strategic benefits to the companies combining."

CVH jointly announced that it would be acquired by AETNA (NYSE: AET) for $42.08.

For an analyst ratings summary and ratings history on Coventry Health Care click here. For more ratings news on Coventry Health Care click here.

Shares of Coventry Health Care closed at $42.04 yesterday.

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