Wedbush Raises Price Target on Universal American (UAM), Long-Term Growth
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Price: $9.97 --0%
Rating Summary:
0 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Neutral rating on shares of Universal American Corp (NYSE: UAM) and notes that current trading levels may double the estimated $250 million of free cash at the parent for Newco.
The firm is raising its price target on the company from $17 to $19 and comments that NewCo will have cash inline with its peers, but unlike it's peers, NewCo has no debt. The firm is also raising its FY11 EPS estimates from $1.58 to $1.66.
The company's YTD enrollment losses have reached 116 thousand members and enroll is currently only 173 thousand, lower than the firms estimate by 1 thousand and below the company's initial guidance of 178 thousand.
Wedbush reports that it remains concerned in the short-term, but ong term, it likes the market. "We believe the growth potential of Medicare Advantage is undervalued by investors. The influx of baby boomers may add as much as $10B in revenue to the sector every 5 yrs. During that time we anticipate managed care will see significant growth in penetration from its current level of 25%; by 2017 it may be as high as 50% based on recent trends showing managed care outpacing market growth 7:1."
For more ratings news on Universal American Corp click here and for the rating history of Universal American Corp click here.
Shares of Universal American Corp closed at $22.76 yesterday.
The firm is raising its price target on the company from $17 to $19 and comments that NewCo will have cash inline with its peers, but unlike it's peers, NewCo has no debt. The firm is also raising its FY11 EPS estimates from $1.58 to $1.66.
The company's YTD enrollment losses have reached 116 thousand members and enroll is currently only 173 thousand, lower than the firms estimate by 1 thousand and below the company's initial guidance of 178 thousand.
Wedbush reports that it remains concerned in the short-term, but ong term, it likes the market. "We believe the growth potential of Medicare Advantage is undervalued by investors. The influx of baby boomers may add as much as $10B in revenue to the sector every 5 yrs. During that time we anticipate managed care will see significant growth in penetration from its current level of 25%; by 2017 it may be as high as 50% based on recent trends showing managed care outpacing market growth 7:1."
For more ratings news on Universal American Corp click here and for the rating history of Universal American Corp click here.
Shares of Universal American Corp closed at $22.76 yesterday.
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