UPDATE: Jefferies Raising Price Target On HealthSpring (HS)

Jefferies & Co. is raising its price target on shares of HealthSpring

to $46 from $44, and it remains at a Buy rating. In a note to clients, Jefferies writes, "HS hosts its Investor Day tomorrow, and we expect a favorable update and outlook. Management will likely lower its 2011 EPS guidance (anticipated given the previously announced equity offering is now finished), but commentary on the Medicare environment and strategic initiatives should be encouraging. Lower EPS guidance. We expect the company will lower its 2011 EPS guidance tomorrow by ~$0.30 (currently $3.60-3.90). Otherwise, the revised EPS outlook should come during 1Q11 earnings. As a reminder, HS priced a ~$300mm (8.6mm shares) equity offering on 3/29, so while most Street estimates haven't been adjusted yet, the market shouldn't be surprised by updated guidance." Shares of HS lost 13 cents yesterday to close at $39.97.