JP Morgan Reiterates Overweight, $33 PT on Centene Post Investor Day
JP Morgan reiterates its Overweight rating and $33 price target on Centene (NYSE: CNC) as the company elaborates on visibility going forward.
JP Morgan notes, "Centene management laid out its view around medical cost issues across new TX/KY markets as well as the Celtic individual business. The good news here is that the company sees TX as driving more cost than KY in 2012 and also sees getting margins back in-line w/expectations by the 4th qtr in TX which should leave higher Q4 EPS run-rate into 2013. ...Look for focus going forward on KY commentary from competitors as well as TX rates post expiration of continuity of care regs on June 1."
CNC closed at $28.20 on Thursday.
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