Health Net (HNT) PT Lifted to $62 at Wedbush Post Q4

Wedbush analyst Sarah James bumped her price target on Health Net (NYSE: HNT) to $62.00 (from $56.00) following Q4 results but maintained a Neutral rating.

"We see Health Net as potentially building in a more conservative cushion than peers for 2015 commercial pricing and cost trends; we believe this could lead to earnings upside to our estimates," James said. "Health Net priced for a 50-100bps increase off the 6% 2014 base, at the high end of peers who range from 0-100bps with the average 50-90 bps. The high-end pricing comes despite strong medical management across the 49.8% of their book in narrow network plans where we believe annual cost trend increases tend, on average, to be below industry trend levels."

The firm bumped FY 2015 EPS from $3.16 to $3.18.

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

Shares of Health Net closed at $56.01 yesterday.

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