UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT on Universal American
In a report published Monday, the Goldman Sachs Group reiterated its Neutral rating on Universal American Corporation (NYSE: UAM), but slightly lowered its price target from $12.00 to $11.00.
Goldman Sachs noted, “2Q results fell short of our model on operating margins. The company continues to lose leverage from stagnant Medicare Advantage (MA) enrollment and has struggled to significantly cut overhead costs following the divestiture of the Medicare drug business last year. Meanwhile, the key actions for this year have been the company's acquisition of APS Healthcare and the focus on investing in CMS-sponsored Accountable Care Organizations.”
Universal American Corporation closed on Friday at $9.21.
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