UPDATE: JP Morgan Initiates WellPoint with Neutral, $75 PT; Looking for Consistent Execution
JP Morgan initiates its coverage on WellPoint (NYSE: WLP) with a Neutral rating and a price target of $75.
JP Morgan says, "While first quarter performance was solid, especially in light of issues at a number of managed care peers, the combination of mis-execution across the last several years combined with above average exposure to healthcare reform implementation uncertainty in a number of the company's key business segments leaves risk/reward fairly balanced. We look toward upcoming data-points including Q2'12 results (Medicare Advantage performance and cost trends), with Supreme Court / Elections particularly meaningful as WellPoint would likely benefit more than peers should key reform based regulations be changed / over-turned."
WLP closed at $69.47 on Tuesday.
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