UPDATE: Deutsche Bank Lowers PT on Health Net from $24 to $16
Deutsche Bank reiterated a Sell rating on Health Net (NYSE: HNT) and lowered its price target from $24 to $16.
Deutsche Bank commented, “HNT cuts 2012 ops EPS guidance by 57%; fundamentals under severe pressure -HNT's earnings remained under severe pressure in 2Q as margin challenges spread from the Commercial segment to Medicaid and Medicare as well. HNT reported core ops EPS of $0.19 in 2Q although this included ~$0.10 per share in realized gains so the underlying EPS equated to around $0.09. Ex realized gains, HNT produced only a dime in operating EPS in 1H12. We are reducing 2012-2013 EPS ests & PT and maintain Sell based on ongoing deterioration in the company's business fundamentals.”
Health Net closed at $18.36 on Friday.
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