Wedbush Raises Price Target on Aetna (AET) on Lower MLR Forecast
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Price: $212.70 --0%
Rating Summary:
10 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reiterating its Neutral rating on shares of Aetna (NYSE: AET) and is raising its price target by $1 to $45 due to a lower utilization rate.
The firm is lowering lowering its commercial MLR estimate by 100bps for Q2 and 30bps for 2011. It is also raising its EPS estimates by $0.09 for Q2 and $0.13 for 2011.
AET reported that its Medicare sanction was increased in June, which has the firm looking forward to an update on MA guidance within the next selling quarter.
Over the past three years, AET has spent on average $1.4 billion on stock buybacks while using up 81 percent of its cash flows from operations over the last ten years.
Wedbush raised its 2011 and 2012 EPS estimates from $4.32 and $4.18 to $4.45 and $4.20.
For more ratings news on Aetna click here and for the rating history of Aetna click here.
Shares of Aetna closed at $43.39 yesterday.
The firm is lowering lowering its commercial MLR estimate by 100bps for Q2 and 30bps for 2011. It is also raising its EPS estimates by $0.09 for Q2 and $0.13 for 2011.
AET reported that its Medicare sanction was increased in June, which has the firm looking forward to an update on MA guidance within the next selling quarter.
Over the past three years, AET has spent on average $1.4 billion on stock buybacks while using up 81 percent of its cash flows from operations over the last ten years.
Wedbush raised its 2011 and 2012 EPS estimates from $4.32 and $4.18 to $4.45 and $4.20.
For more ratings news on Aetna click here and for the rating history of Aetna click here.
Shares of Aetna closed at $43.39 yesterday.
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