Goldman Sachs Downgrades Rating to Neutral and Lowers PT to $29 on Health Net

A report from Goldman Sachs downgrades its rating from Buy to Neutral and lowers its price target from $32 to $29 on Health Net (NYSE: HNT).

The report states, “While 3Q earnings were in-line and support our view that HNT is competitively well-positioned, we see the regulatory and pricing environment in California – Health Net's core market – as increasingly less favorable in comparison with other markets, a key factor likely to limit upside to 2012-2013 earnings and also making a possible acquisition of the company somewhat less likely. Since our upgrade to Buy on July 22, 2009, HNT shares are +90.5% vs. the S&P +29.7%. Over the last 12 months HNT is -0.6% vs. the S&P +2.9%."

HNT closed yesterday at $26.61.