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Wells Fargo Upgrades Health Net (HNT) to Outperform

December 4, 2012 8:33 AM EST Send to a Friend
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Price: $47.20 --0%

Rating Summary:
    7 Buy, 9 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Wells Fargo upgraded Health Net (NYSE: HNT) from Market Perform to Outperform and raised its valuation range to $28-30 from $26-28.

The firm comments, "We are upgrading shares of Health Net to Outperform from Market Perform as we believe most of the challenges the insurer faced in 2012 have been addressed. Also, the dual opportunity in California, combined with the recently signed agreement with the DHCS, should support growth in 2013 and 2014, allowing the insurer to better absorb ACA headwinds. We believe HNT has been under pressure recently partly on fears of Health Net's 2013 EPS outlook. Based on recent discussions with management, it seems unlikely that HNT would provide specific guidance until early January or its Q4 earnings release. We expect HNT to outperform based on our above Street EPS view and expectations for P/E multiple expansion as investors gain confidence in Health Net's 2013 outlook, and in light of the dual opportunity in CA and Health Net’s positioning to absorb pressures from health care reform in 2014."

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

Shares of Health Net closed at $23.85 yesterday.




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