Jefferies Raises Price Targets on Companies Within Managed Care Sector Following Market Checks
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Price: $389.03 +1.09%
Rating Summary:
31 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
31 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies forecasts MCOs will report solid fourth quarter results as market checks indicate continued weak cost trends.
The firm highlights the combination of low cost trends, an encouraging MA selling season, SG&A leverage, and strong cash flow expectations point toward a strong start to 2012. For the fourth quarter, the firm anticipates results will be at the top end or will exceed guidance expectations. Jefferies’ surveys indicated no spike in utilization.
Jefferies top pick in the sector is UnitedHealth Groip (NYSE: UNH) as it has the best earnings visibility through 2012 and into 2013, combined with a lower risk profile than its peers.
An analyst at Jefferies comments, “MCO stocks should continue working in early 2012 cost trend remaining low. Uptake of high-deductible plans and the sluggish economy should keep utilization in-check. The group is also experiencing a strong MA selling season and downside risk to total medical membership is low, in our view.”
To go inline with market trends and the firm’s expectations for fiscal 212, Jefferies has made a number of price target changes.
Jefferies is raising its price target on Aetna Inc. (NYSE: AET) from $55 to $56 while reaffirming its Buy rating.
Jefferies is raising its price target on Cigna Inc. (NYSE: CI) from $62 to $63 while reaffirming its Buy rating.
Jefferies is raising its price target on Health Net Inc. (NYSE: HNT) from $29 to $34 while reaffirming its Hold rating.
Jefferies is raising its price target on Humana Inc. (NYSE: HUM) from $107 to 111 while reaffirming its Buy rating.
Jefferies is raising its price target on UnitedHealth Groip (NYSE: UNH) from $60 to $68 while reaffirming its Buy rating.
Jefferies is raising its price target on WellPoint Inc. (NYSE: WLP) from $86 to 87 while reaffirming its Buy rating.
The firm highlights the combination of low cost trends, an encouraging MA selling season, SG&A leverage, and strong cash flow expectations point toward a strong start to 2012. For the fourth quarter, the firm anticipates results will be at the top end or will exceed guidance expectations. Jefferies’ surveys indicated no spike in utilization.
Jefferies top pick in the sector is UnitedHealth Groip (NYSE: UNH) as it has the best earnings visibility through 2012 and into 2013, combined with a lower risk profile than its peers.
An analyst at Jefferies comments, “MCO stocks should continue working in early 2012 cost trend remaining low. Uptake of high-deductible plans and the sluggish economy should keep utilization in-check. The group is also experiencing a strong MA selling season and downside risk to total medical membership is low, in our view.”
To go inline with market trends and the firm’s expectations for fiscal 212, Jefferies has made a number of price target changes.
Jefferies is raising its price target on Aetna Inc. (NYSE: AET) from $55 to $56 while reaffirming its Buy rating.
Jefferies is raising its price target on Cigna Inc. (NYSE: CI) from $62 to $63 while reaffirming its Buy rating.
Jefferies is raising its price target on Health Net Inc. (NYSE: HNT) from $29 to $34 while reaffirming its Hold rating.
Jefferies is raising its price target on Humana Inc. (NYSE: HUM) from $107 to 111 while reaffirming its Buy rating.
Jefferies is raising its price target on UnitedHealth Groip (NYSE: UNH) from $60 to $68 while reaffirming its Buy rating.
Jefferies is raising its price target on WellPoint Inc. (NYSE: WLP) from $86 to 87 while reaffirming its Buy rating.
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