UPDATE: Cantor Fitzgerald Initiates Hold, $27 PT on Health Net on Lower Cost, Restructuring and Sales

Cantor Fitzgerald initiates its coverage on Health Net HNT with a Buy rating and a price target of $27. Cantor Fitzgerald says, "Although 1Q:12 was marred by $67 million of adverse development, several things could drive better results in 2013, in our opinion, such as lower costs, restructuring, and ramping sales of lower-cost plans. The stock's valuation is not high by historical standards, or in comparison with its peers, but catalysts are not easy to find, and with all the economic headwinds and uncertainty about the managed care outlook in general, we are not inclined to step up to the stock absent some evidence that enrollment is once again trending up." HNT closed at $24.84 on Tuesday.