Estimates Updated For Magellan Health Services

Citigroup is updating its forecast model for Magellan Health Services

. In the report, Citigroup writes "Our $47 price target is based on EV/EBITDA target multiple of 3.8x our 2011 EBITDA projection of $218 million. Our calculation assumes the company will finish 2011 with $414 million in cash and no debt. Our price target multiple attempts to factor in Magellan's significant cash balance, along with the potential that Magellan could add one or more large contracts over the next six months." Magellan Health Services closed yesterday at $47.45.