Deutsche Bank Reaffirms Aetna's 2012 Guidance

In a research report published by Deutsche Bank today, Aetna Inc. (NYSE: AET) is in-line for 4Q EPS with high quality.

Deutsche Bank explained in the report, “While EPS was largely in line, the underlying metrics were high quality with Commercial MLR, revenue, enrollment, and operating cash flow all beating our estimates. DCP increased sequentially. Moreover, a higher tax rate (38.8% vs. our 34.0% est) shaved $0.07 off EPS relative to our model. The 4Q tax rate included a non-recurring provision related to a state legacy tax matter. When adjusted for a normalized tax rate, operating EPS would have been $1.04.”

Deutsche Bank reiterates its Buy rating and $59 PT on Aetna, which closed yesterday at $44.02.