UDPATE: Deutsche Bank Upgrades Coventry Health Care to Hold

Deutsche Bank published a report on Coventry Health Care

and upgraded its rating from Sell to Hold after the Aetna

merger announcement. In the report, Deutsche Bank wrote, "We are upgrading our rating on CVH shares to Hold from Sell and raising our price target to $42. Our rating and price target changes reflect the company's announcement on August 20 to merge with Aetna for $42.08/share. Our prior Sell rating had been based on our view that CVH's Commercial business could face continued margin pressures due in part to insufficient scale in a post health reform environment. In this context, we view the planned merger with Aetna as beneficial to CVH shareholders; the combined company should be a stronger competitor in the marketplace than we believe CVH would be on its own." Deutsche Bank raised its price target from $29 to $42 on Coventry Health Care, which is currently trading up 0.48 percent from Friday's $41.74 closing price.