UPDATE: Feltl and Company Downgrades Metropolitan Health Networks to Buy
Feltl and Company reduced its rating on Metropolitan Health Networks (NYSE: MDF) from Strong Buy to Buy as margin see pressure.
Feltl and Company noted, "We are updating our model to reflect 1Q12 MLR drag from the 7,000 new members persisting through the year. We believe our prior model was overly optimistic regarding how quickly the new members' MLR will improve in 2012. … We now believe that is an overly optimistic scenario and expect it will take MDF longer to cycle through all its new members, which is necessary to properly code the member's risk profile to receive higher reimbursement from CMS."
Metropolitan Health Networks closed at $8.43 on Tuesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.