Wedbush Raises Price Target on WellCare Health Plans (WCG), Due to Recent KY Medicaid Expansion Win
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Price: $349.92 --0%
Rating Summary:
12 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 12 Hold, 0 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 WellCare Health Plans (NYSE: WCG), but is raising its price target from $48 to $52.
Due to the recent Medicaid Expansion win in Kentucky, which the firm believes could add $0.20-$0.25 on a yearly basis. As a result Wedbush is raising its 2012 EPS estimate by $0.20 to $3.65.
The contract looks to begin on October 1 adding $700 on an annualized basis and roughly 180-190 thousand members. Margins only are expected to be in the 2 to 3 percent range for the first 2-3 quarters due to start up costs.
The firm announces that its opinion on WellCare has risen since it launched coverage a year ago. Wedbush's new opinion is driven by management addressing many of the key risks.
An analyst at Wedbush comments, "Based on June CMS enrollment data, the company’s Part D membership appears to be heading towards pre-sanction levels. The company’s Part D book has benefited from a full allotment of auto-assignees and enrollment now stands at 953K, only 5% below pre-sanction levels."
Wedbush is looking forward to commentary about the civil suit and $35 million payout which is expected to be made by the end of July.
The firm raised its 2011 and 2012 EPS estimates from $3.61 and $3.38 go $3.65 and $3.58.
For more ratings news on WellCare Health Plans click here and for the rating history of WellCare Health Plans click here.
Shares of WellCare Health Plans closed at $53.45 yesterday.
Due to the recent Medicaid Expansion win in Kentucky, which the firm believes could add $0.20-$0.25 on a yearly basis. As a result Wedbush is raising its 2012 EPS estimate by $0.20 to $3.65.
The contract looks to begin on October 1 adding $700 on an annualized basis and roughly 180-190 thousand members. Margins only are expected to be in the 2 to 3 percent range for the first 2-3 quarters due to start up costs.
The firm announces that its opinion on WellCare has risen since it launched coverage a year ago. Wedbush's new opinion is driven by management addressing many of the key risks.
An analyst at Wedbush comments, "Based on June CMS enrollment data, the company’s Part D membership appears to be heading towards pre-sanction levels. The company’s Part D book has benefited from a full allotment of auto-assignees and enrollment now stands at 953K, only 5% below pre-sanction levels."
Wedbush is looking forward to commentary about the civil suit and $35 million payout which is expected to be made by the end of July.
The firm raised its 2011 and 2012 EPS estimates from $3.61 and $3.38 go $3.65 and $3.58.
For more ratings news on WellCare Health Plans click here and for the rating history of WellCare Health Plans click here.
Shares of WellCare Health Plans closed at $53.45 yesterday.
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