Jefferies Cuts Numbers on Aetna (AET) Following Q1
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Price: $212.70 --0%
Rating Summary:
10 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
10 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Jefferies trimmed its price target and estiamtes on Aetna (NYSE: AET) following a Q1 miss and new concerns about earnings upside from reserves. However, the firm is keeping their Buy rating.
The firm comments, "The "curve ball" of zero PPD in 1Q earnings can trigger some paranoia. However, a second, closer listen to the call revealed comments mirroring peers', even if AET didn't match the reserve release. The MLR guidance, redoubled by the $170MM in reserves, allows for a sharper increase in medical costs than is likely to occur."
Q2 EPS goes down from $1.38 to $1.22, FY12 from $5.08 to $5.06 and FY13 from $5.73 to $5.61.
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 $45.31 yesterday.
The firm comments, "The "curve ball" of zero PPD in 1Q earnings can trigger some paranoia. However, a second, closer listen to the call revealed comments mirroring peers', even if AET didn't match the reserve release. The MLR guidance, redoubled by the $170MM in reserves, allows for a sharper increase in medical costs than is likely to occur."
Q2 EPS goes down from $1.38 to $1.22, FY12 from $5.08 to $5.06 and FY13 from $5.73 to $5.61.
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 $45.31 yesterday.
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