Goldman Sachs Downgrades WellCare Health Plans (WCG) to Neutral
Get Alerts WCG Hot Sheet
Price: $349.92 --0%
Rating Summary:
12 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
12 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Join SI Premium – FREE
Goldman Sachs downgraded WellCare Health Plans (NYSE: WCG) from Buy to Neutral with a price target of $60.00 (from $65.00) citing downside risk to Medicare Advantage (MA)-driven earnings, which is about one-third of the company's earnings.
Shares are up 178% since Goldman upgraded the stock on May 20, 2009, versus 127% for the managed care sector and 84% for the S&P.
"While WellCare's MA exposure is not new, the process of MA rate finalization revealed more vulnerability on the risk recalibration rate factor for 2014," analyst Matthew Borsch said. "Combined with the slow pace of STAR quality score improvement at WellCare, these factors largely offset the near-term benefit of WellCare all-HMO product position, in our view."
The firm revised 2014 EPS to $5.50 (prior $5.75) and 2015 EPS to $6.30 (prior $6.65)
For an analyst ratings summary and ratings history on WellCare Health Plans click here. For more ratings news on WellCare Health Plans click here.
Shares of WellCare Health Plans closed at $53.85 yesterday.
Shares are up 178% since Goldman upgraded the stock on May 20, 2009, versus 127% for the managed care sector and 84% for the S&P.
"While WellCare's MA exposure is not new, the process of MA rate finalization revealed more vulnerability on the risk recalibration rate factor for 2014," analyst Matthew Borsch said. "Combined with the slow pace of STAR quality score improvement at WellCare, these factors largely offset the near-term benefit of WellCare all-HMO product position, in our view."
The firm revised 2014 EPS to $5.50 (prior $5.75) and 2015 EPS to $6.30 (prior $6.65)
For an analyst ratings summary and ratings history on WellCare Health Plans click here. For more ratings news on WellCare Health Plans click here.
Shares of WellCare Health Plans closed at $53.85 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- 2 reasons why Tesla stock fell on Thursday
- MAG Silver (MAG:CN) (MAG) PT Lowered to Cdn$19.50 at Raymond James
- AO World Plc. (AO/:LN) PT Raised to GBP1.25 at Jefferies
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst PT Change, DowngradesRelated Entities
Standard & Poor's, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!