Wedbush Raises Price Target on HealthSpring (HS), Strong Growth Through M&A
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Price: $55.00 --0%
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reiterating its Outperform rating on shares of HealthSpring (NYSE: HS) and is raising its price target from $41 to $45 following the company's investor meeting on Wednesday.
At the meeting HS highlight its long term growth plans through M&A, organic growth, growth in point of care facilities, and growth in aged blind and disabled medicaid membership.
The firm looked at how acquiring UAM, Caremore, Arcadian and WCG would affect the company. The firm reports that UAM's Medicare segment could add $(0.07)-$.32 in the first year and $0.31-$0.68 on a run basis, while Arcadian would bring in $0.13-$28 in the first year and $0.50-$0.60 on a run basis. Privately held CareMore is predicted to earn $0.56-0.69 in the first year and $0.80-0.90 on a run rate basis.
Wedbush no longer looks at WCG as a potential acquisition following a one on one discussion with the company’s CFO, it now believes that it wont be until late 2012 or 2013 before HS considers getting deeper into Medicaid
The firm is maintaining it's Q1 estimate of $0.62, but is revising it's 2011 and 2012 estimates from $3.94 and $4.00 to $3.65 and $3.70.
For more ratings news on HealthSpring click here and for the rating history of HealthSpring click here.
Shares of HealthSpring closed at $38.94 yesterday.
At the meeting HS highlight its long term growth plans through M&A, organic growth, growth in point of care facilities, and growth in aged blind and disabled medicaid membership.
The firm looked at how acquiring UAM, Caremore, Arcadian and WCG would affect the company. The firm reports that UAM's Medicare segment could add $(0.07)-$.32 in the first year and $0.31-$0.68 on a run basis, while Arcadian would bring in $0.13-$28 in the first year and $0.50-$0.60 on a run basis. Privately held CareMore is predicted to earn $0.56-0.69 in the first year and $0.80-0.90 on a run rate basis.
Wedbush no longer looks at WCG as a potential acquisition following a one on one discussion with the company’s CFO, it now believes that it wont be until late 2012 or 2013 before HS considers getting deeper into Medicaid
The firm is maintaining it's Q1 estimate of $0.62, but is revising it's 2011 and 2012 estimates from $3.94 and $4.00 to $3.65 and $3.70.
For more ratings news on HealthSpring click here and for the rating history of HealthSpring click here.
Shares of HealthSpring closed at $38.94 yesterday.
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