Centene (CNC) Analyst Day Takeaways - UBS

Centene (NYSE: CNC) currently has visibility on $45 bln of revenue for 2017 (Cons: $45.8 bln), according to mgt, which would represent 14% Y/Y growth from the 2016 guidance mid-point. Y/Y growth is to be driven by a full year contribution from HNT (acquired 1Q16), exchange market expansions, TX STAR KIDS program (2H16), LA Medicaid expansion (3Q16), PA and NE contract rollouts (2017), and new specialty business. The 2017 outlook also includes the deferral of $750 mln related to health insurer fee.

Centene currently has visibility on $45 bln of revenue for 2017 (Cons: $45.8 bln), according to mgt, which would represent 14% Y/Y growth from the 2016 guidance mid-point. Y/Y growth is to be driven by a full year contribution from HNT (acquired 1Q16), exchange market expansions, TX STAR KIDS program (2H16), LA Medicaid expansion (3Q16), PA and NE contract rollouts (2017), and new specialty business. The 2017 outlook also includes the deferral of $750 mln related to health insurer fee.

No change to Buy rating or price target of $80.00

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 $67.01 yesterday.

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