Update: Stifel Nicolaus Lowering Price Target on WellCare Health Plans

Stifel Nicolaus is out with a research report on WellCare Health Plans, Inc. (NYSE: WCG) and is lowering its price target to $55 from $57, but it has a Buy rating on shares.

In a note to clients, Stifel Nicolaus writes, "All of the Medicaid-focused MCOs will likely see share prices languish during 2H11 until 3Q11 is reported. Our opinion is that cost trends will not deteriorate further from current market expectations and share prices may gain traction as a stable 3Q11 is announced supported with positive management comment about cost trends and market expansion. Into 2012, visibility on new market expansions should grow and may have a favorable impact on top-line expectations. Maintain buy."

Shares of WCG closed at $40.86 yesterday.