Barclays Maintains an 'Overweight' on Centene (CNC); Meetings with Management: Preparing for Growth and Looking
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Price: $64.61 +0.73%
Rating Summary:
19 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
19 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Centene (NYSE: CNC) price target of $43.00.
Barclays analyst says, "Despite having won a portion of each of the four large requests for proposals (RFPs) announced earlier this year (Arizona, Kentucky, Louisiana, Texas), the company continues to feel very good about its growth prospects over the next several years. The primary driver of this optimism continues to be challenged state budgets, which the company expects will continue to facilitate the adoption of Medicaid managed care."
"Following a busy year already for Medicaid, we continue to recommend purchase of the segment based on the aforementioned growth opportunities and favor Centene based primarily on its advantageous positioning in several key markets, its strong track record in RFP bidding, and what we view to be a more sustainable margin profile. Trading at 11.9x our 2012 EPS estimates-a premium to pure-play Medicaid peers but below what we believe is appropriate-we continue to recommend owning the shares, as the growth prospects outweigh potential risks."
For more ratings news on Centene click here and for the rating history of Centene click here.
Shares of Centene closed at $29.59 yesterday.
Barclays analyst says, "Despite having won a portion of each of the four large requests for proposals (RFPs) announced earlier this year (Arizona, Kentucky, Louisiana, Texas), the company continues to feel very good about its growth prospects over the next several years. The primary driver of this optimism continues to be challenged state budgets, which the company expects will continue to facilitate the adoption of Medicaid managed care."
"Following a busy year already for Medicaid, we continue to recommend purchase of the segment based on the aforementioned growth opportunities and favor Centene based primarily on its advantageous positioning in several key markets, its strong track record in RFP bidding, and what we view to be a more sustainable margin profile. Trading at 11.9x our 2012 EPS estimates-a premium to pure-play Medicaid peers but below what we believe is appropriate-we continue to recommend owning the shares, as the growth prospects outweigh potential risks."
For more ratings news on Centene click here and for the rating history of Centene click here.
Shares of Centene closed at $29.59 yesterday.
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