Wedbush Raises Price Target on Coventry Health Care (CVH), Market Trends Look Strong
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Price: $49.99 --0%
Rating Summary:
1 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 9
Rating Summary:
1 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 9
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Wedbush is reiterating its Neutral rating on shares of Coventry Health Care (NYSE: CVH) and is raising its price target on them by $2 to $38.
The firm is raising its Q2 and 2011 EPS estimates by $0.05 and $0.02 to $0.70 and $2.99 as its proprietary consumer and physician surveys suggest utilization has remained low through June. The firm is also lowering its MA estimate 1 thousand and its PDP estimate by 6 thousand based on CMS date from June.
Wedbush is also updating its estimates to include the recent Medicaid win in KY, which may add $0.06-$0.09 on an annualized basis and 180-190 thousand members. It forecasts margins of 2-3 percent and a start date of October 1.
An analyst at the firm comments, "We believe continued moderate utilization trends will provide upside to margins in the second quarter. We believe much of the call will be focused on 2011 guidance which has several potential tailwinds including M&A opportunities and the recent Kentucky Medicaid expansion win."
Wedbush's current 2012 EPS estimate is $3.22, raised from $3.15. For 2011 and 2012 the firm estimates revenues of $12.98 billion and $13.78 billion.
For more ratings news on Coventry Health Care click here and for the rating history of Coventry Health Care click here.
Shares of Coventry Health Care closed at $36.86 yesterday.
The firm is raising its Q2 and 2011 EPS estimates by $0.05 and $0.02 to $0.70 and $2.99 as its proprietary consumer and physician surveys suggest utilization has remained low through June. The firm is also lowering its MA estimate 1 thousand and its PDP estimate by 6 thousand based on CMS date from June.
Wedbush is also updating its estimates to include the recent Medicaid win in KY, which may add $0.06-$0.09 on an annualized basis and 180-190 thousand members. It forecasts margins of 2-3 percent and a start date of October 1.
An analyst at the firm comments, "We believe continued moderate utilization trends will provide upside to margins in the second quarter. We believe much of the call will be focused on 2011 guidance which has several potential tailwinds including M&A opportunities and the recent Kentucky Medicaid expansion win."
Wedbush's current 2012 EPS estimate is $3.22, raised from $3.15. For 2011 and 2012 the firm estimates revenues of $12.98 billion and $13.78 billion.
For more ratings news on Coventry Health Care click here and for the rating history of Coventry Health Care click here.
Shares of Coventry Health Care closed at $36.86 yesterday.
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