Barclays Maintains an 'Overweight' on Magellan Health Services (MGLN); 2012 Guidance Shows Surprising Top-Line Strength

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

Barclays analyst says, "Magellan provided preliminary guidance for 2012 which we view as basically in line with expectations, though the revenue forecast looks stronger than we anticipated...With this formal guidance, we increase our EPS estimates for both 2011 and 2012. Specifically, in 2011 we project EPS of $3.95, slightly higher than our previous estimate of $3.90, driven by the impact of continued share repurchases. In addition, we are taking our 2012 EPS estimate up to $4.10, from $4.00 previously, driven by a better-than-expected revenue forecast. Lastly, we are maintaining our price target to $62, which represents a target multiple of about 15.1x times our 2012 EPS estimate of $4.10."

For an analyst ratings summary and ratings history on Magellan Health Services click here. For more ratings news on Magellan Health Services click here.

Shares of Magellan Health Services closed at $47.37 yesterday.

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