UPDATE - UBS Downgraded HealthSpring (HS) to Neutral Following Announcement of Acquisition by CIGNA (CI)
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Price: $55.00 --0%
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
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UPDATE - UBS downgraded HealthSpring (NYSE: HS) from Buy to Neutral. PT raised from $48 to $55.
UBS analyst said, "We downgrade HS to Neutral from Buy following the announcement on 10/24 that the company has signed a definitive agreement to be acquired by CIGNA (NYSE: CI) for $55 per share / $3.8 billion in cash (representing 37% premium to Friday’s closing price). We also increase our Price Target to $55 (in-line with CIGNA deal), up from prior target of $48 which was based on target multiple of 11x our 2012E EPS of $4.35. The transaction is projected to close in 1H’12 subject to regulatory approval."
"While timing & magnitude of further M&A in sector is uncertain, we see Aetna (NYSE: AET) as most logical acquirer given potential to improve scale, as well as drive structural improvement in fast-growing gov’t segments w/list of potential candidates including WCG & Medicaid peers as well as HealthNet (NYSE: HNT) / Coventry Health Care (NYSE: CVH). That said, we believe the greatest strategic / financial combination remains a merger with CIGNA, which while less likely in near term given CI's HS purchase, continues to remain likely, in our view, over the long term."
To see more ratings changes on HS, Click Here
UBS analyst said, "We downgrade HS to Neutral from Buy following the announcement on 10/24 that the company has signed a definitive agreement to be acquired by CIGNA (NYSE: CI) for $55 per share / $3.8 billion in cash (representing 37% premium to Friday’s closing price). We also increase our Price Target to $55 (in-line with CIGNA deal), up from prior target of $48 which was based on target multiple of 11x our 2012E EPS of $4.35. The transaction is projected to close in 1H’12 subject to regulatory approval."
"While timing & magnitude of further M&A in sector is uncertain, we see Aetna (NYSE: AET) as most logical acquirer given potential to improve scale, as well as drive structural improvement in fast-growing gov’t segments w/list of potential candidates including WCG & Medicaid peers as well as HealthNet (NYSE: HNT) / Coventry Health Care (NYSE: CVH). That said, we believe the greatest strategic / financial combination remains a merger with CIGNA, which while less likely in near term given CI's HS purchase, continues to remain likely, in our view, over the long term."
To see more ratings changes on HS, Click Here
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