Barclays Raises Price Target on Coventry Health Care (CVH), Consensus Sets Expectations High

Barclays is reiterating its Equalweight rating on shares of Coventry Health Care (NYSE: CVH), while increasing its price target from $36 to $38.

The company reported solid quarterly results and raised its guidance. The mid point of CVH's new guidance was $2.88, still below the Street's estimate of $2.99 for the year. Due to the strong quarter, the firm increased its 2011 and 2012 EPS estimates by $0.10 to $2.90 and $3.10.

An analyst at Barclays comments, "We believe that market perceptions of CVH were that the company has the most leverage to risk-based revenue segments and therefore in a favorable operating environment, Coventry should show the strongest outperformance. This was one of the key factors that drove a premium valuation in our opinion. Unfortunately, results were "only" modestly better than expected and the outsized positive revisions did not come."

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 $32.00 yesterday.

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