UPDATE - Barclays Downgraded Healthways (HWAY) to Underweight; Obvious Earnings Pressure as Larger Risks Become More Evident

UPDATE - Barclays downgraded Healthways (NASDAQ: HWAY) from Equalweight to Underweight, price target slashed from $19 to $5.

Barclays analyst says, "First, we are lowering our 2011 EPS estimate to $0.95 from $1.00, which represents the mid-point of the company's new guidance range for 2011. Second, we are lowering our 2012 EPS estimate to $0.60 from our previous estimate of $1.15, due mostly to the loss of Cigna contract. Third, our 2013 estimate of $0.50 reflects the full impact of this contract loss. Finally, we are decreasing our price target to $5 per share, which now represents a target multiple of 10x our 2013 EPS estimate of $0.50 per share, and 8.3x our 2012 EPS estimate of $0.60 per share."

To see more ratings changes on HWAY, Click Here

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