Jefferies Raises Price Target on WellCare Health Plans (WCG) to $105 Following 2Q
Jefferies reiterated a Hold rating on WellCare Health Plans (NYSE: WCG), and raised the price target to $105.00 (from $101.00), following the company's 2Q earnings report and conference call. WCG raised EPS guidance 37c at the midpoint to $4.95-5.05.
Analyst David Windley commented, "We modestly increase our EPS projections and PT to reflect improving fundamentals, but maintain our Hold rating on valuation (19x 2017 EPS). Broad margin improvement continues to drive WCG's organic business. However, accretive acquisitions of AET/HUM divested lives ($0.50-$1) are now off the table with MOH under contract to buy those lives. Thus, a $7 EPS bull case in 2017 seems unlikely."
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Shares of WellCare Health Plans closed at $111.91 yesterday.