Goldman Sachs Maintains Neutral, $38 Target on Health Net

Goldman Sachs remains Neutral-rated with a $38 target price on Health Net (NYSE: HNT) following broadly in-line results for 4Q.

Goldman Sachs notes, "Following 4Q results that were broadly in line with our estimates (4Q operating EPS was $0.90 vs. our $0.89), we tweak our 2012-14 EPS estimates upwards as the better than expected start to the 2012 Medicare Advantage enrollment season flows through our model. We maintain our recently introduced 2014 EPS at $4.56, implying 16% yoy EPS growth, reflecting strong top-line growth from dual-eligible conversion and reform coverage expansion, partly offset by commercial and Medicare margin contraction."

HNT closed at $36.48 a share on Friday.