Goldman Sachs Downgrades Aetna (AET) to Neutral

Goldman Sachs downgraded Aetna (NYSE: AET) from Buy to Neutral with a price target of $88.00 (from $91.00).

Analyst Matthew Borsch said, "We have downgraded AET to Neutral from Buy reflecting our view of less upside potential given our forecast for less favorable sector trends. Our change also reflects our view that there is more upside in other areas of our coverage."

"We maintain our 2014 EPS at $6.55 but lower our 2015 EPS estimate to $7.00 (from prior $7.10) and our 2016 EPS to $7.70 (from prior $8.00) reflecting slightly higher medical cost ratios in both years. Our EPS estimates now imply a 2014-2016 growth trajectory of 12%/7%/10% versus prior 12%/8%/13% with 2016 reflecting an acceleration in earnings growth as ACA pressures subside partly offset by an earnings headwind from less favorable utilization trend," he added.

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 $78.32 yesterday.

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