Barclays Maintains an 'Overweight' on Magellan Health Services (MGLN); Winner in Highly Competitive Louisiana BH RFP; Up to 5% Accretive

Barclays maintains an 'Overweight' on Magellan Health Services (NASDAQ: MGLN) price target of $62.00

Barclays analyst says, "Friday, Magellan announced that the State of Louisiana has selected the company to manage behavioral health care for Medicaid residents in the state...This contract win is another positive announcement for Magellan, which we estimate could add around $0.21 per share, or 5%, to Magellan's bottom line when fully implemented."

"We believe this contract award, along with Magellan's extended contract in
Maricopa, Arizona, re-affirms the company's competitiveness as a stand-alone
behavioral health manager. Magellan out-bid three competitors for the award,
including Centene and AmeriHealth, which both recently won statewide Medicaid managed care awards in the state (along with AMERIGROUP (NYSE: AGP), Community Health Solutions (NYSE: CYH) and UnitedHealth (NYSE: UNH)). We would argue that this highly pursued RFP included the full spectrum of the strongest competitors and speaks to the strength and leadership position that Magellan maintains in the public sector behavioral health segment."

For more ratings news on Magellan Health Services click here and for the rating history of Magellan Health Services click here.

Shares of Magellan Health Services closed at $46.65 yesterday.

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