Wedbush Adds HealthSpring (HS) to Best Ideas List; Recent Sell-Off Overdone
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Price: $55.00 --0%
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush reiterates an 'Outperform' HealthSpring (NYSE: HS) price target of $50.00.
Wedbush analyst says, "The Wedbush Investment Committee is adding HS to the Best Ideas List. We believe the company 1) has a sustainable cost advantage derived from owning clinics and high-quality star ratings, 2) is likely to deploy capital in the near term in what we believe will be an acquisition that is up to $0.30 per share accretive, and 3) is highly levered to the Medicare growth cycle. As the largest pure-play Medicare company, HS stands to benefit as 7 million eligibles and $10 billion in incremental revenue are added to the Medicare market through 2015. Medicare managed care growth is outpacing the overall eligible market growth by 7:1, and we estimate this continued penetration could hit 50% by 2017 from the current 25%."
For more ratings news on HealthSpring click here and for the rating history of HealthSpring click here.
Shares of HealthSpring closed at $35.83 yesterday.
Wedbush analyst says, "The Wedbush Investment Committee is adding HS to the Best Ideas List. We believe the company 1) has a sustainable cost advantage derived from owning clinics and high-quality star ratings, 2) is likely to deploy capital in the near term in what we believe will be an acquisition that is up to $0.30 per share accretive, and 3) is highly levered to the Medicare growth cycle. As the largest pure-play Medicare company, HS stands to benefit as 7 million eligibles and $10 billion in incremental revenue are added to the Medicare market through 2015. Medicare managed care growth is outpacing the overall eligible market growth by 7:1, and we estimate this continued penetration could hit 50% by 2017 from the current 25%."
For more ratings news on HealthSpring click here and for the rating history of HealthSpring click here.
Shares of HealthSpring closed at $35.83 yesterday.
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