UPDATE: Cantor Fitzgerald Reiterates Buy Rating, Lowers PT for Coventry Health Care
In a company update published earlier today, Cantor Fitzgerald L.P. reiterated its Buy rating for Coventry Health Care, Inc. (NYSE: CVH), but lowered its price target from $38.00 to $36.00.
Cantor Fitzgerald went on to say “We arrive at our $36 price target for CVH by comparing its current valuation with that of large commercial plans, keeping in mind that its Medicaid and Medicare business is associated with faster growth and higher valuations. At 10.1x our 2013 EPS estimate of $3.25, CVH currently trades at a 10% premium to its peers, but this is well below its historical premium and reflects estimated 2013 earnings that are well below what we believe are normal levels.Our target price assumes a P/E multiple of 11.1x our 2013 EPS estimate, a valuation that is in line with its fiveyear historical average of 10.7x.”
Coventry Health Care, Inc. closed yesterday at $34.19.
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