Aetna (AET) Target Price Raised at Jefferies Amid Strong Q1

Jefferies analyst David Windley bumped his price target on Buy-rated Aetna (NYSE: AET) from $87 to $89 following earnings yesterday.

Windley said, "AET is our top pick and we are buyers even after today's move. Strong 1Q14 results validated our thesis that 2014 guidance was conservative. We believe today's EPS outlook increase (to a $6.45 midpoint) isn't the end, but rather a step toward our $6.65 projection. We also think the market doesn't appreciate earnings power in 2015+. AET's inexpensive valuation (9.5x 2015E EPS) and low double-digit EPS growth make risk/return attractive."

The firm trimmed Q2 EPS from $1.74 to $1.56, raised FY 2014 EPS from $6.62 to $6.65 and FY 2015 EPS from $7.62 to $7.65.

For an analyst ratings summary and ratings history on Aetna click here. For more ratings news on Aetna click here.

Shares of Aetna closed at $72.96 yesterday.

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