Wedbush Raises EPS on WellCare Health Plans

A report from Wedbush reiterates its Neutral Rating and $52 price target on WellCare Health Plans (NYSE: WCG) and raises 11/12 estimates to $4.80/$4.26.

In the report, Wedbush writes, “We see some risk from rate cuts heading into the quarter (FL and GA). While it may be possible for the company to pass on some of the cuts to providers, there still could be margin compression in the company's smaller markets. However, on the Medicare front, the company added eight regions going into the 2012 selling season; it lost only two regions (NJ and HI). The company is now in 28 regions, up from 22 in 2011”.

WCG closed Friday at $38.39.