UBS Maintains a 'Buy' on Centene (CNC); Raising Numbers Post Strong Q2 / RFP Wins

UBS maintains a 'Buy' on Centene (NYSE: CNC) price target raised by $2 to $42.

UBS analyst says, "Strong Q2/revised FY’11 outlook overshadows more modest rate outlook...Based on 2011 EPS guid of $2.13-$2.23, and adj for more “normalized” start-up expenses of $0.08-$0.12 (vs. $0.20-$0.27 in 2011) and other items, we est. EPS starting point closer to $2.25-$2.35 w/likely tailwinds via incremental earnings from 2010/2011 RFP wins, while potential state rate pressures and medical cost trend traj represent key downside swing factors. We increase our FY’11E EPS by $0.05 to $2.25 (up ~$0.20 ex start-up), while our ’12E EPS now $2.55 ($2.50 prior)."

For more ratings news on Centene click here and for the rating history of Centene click here.

Shares of Centene closed at $36.33 yesterday.

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