Wachovia Upgrades HealthSpring, Inc. (HS) to Outperform; Valuation Is Attractive

May 18, 2009 8:44 AM EDT

Wachovia upgrades HealthSpring, Inc. (NYSE: HS) to Outperform. Valuation Range: $15 to $17.

Wachovia analyst says, "HealthSpring shares have been beaten up and we think the consensus view on Medicare is overly negative. We already know that Medicare Advantage rates will be reduced and this we believe is reflected in the shares' valuation - the most depressed multiple in the sector. But, HS has the lowest cost structure in the industry and has successfully operated under lower reimbursement in the past – giving us confidence that the company can adapt once again...Faces Little To No Health Care Reform Risk...Medicare Advantage To Remain Viable...Exit Of Competition Will Benefit HS."

To see more analyst ratings on HS Click Here.

HealthSpring, Inc. (HealthSpring) is a managed care organization with a primary focus on Medicare, the federal government-sponsored health insurance program for United States citizens aged 65 and older, qualifying disabled persons and persons suffering from end-stage renal disease.

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