UPDATE: Bank of America Upgrades Centene to Buy on Health Care Reform Tailwinds
Bank of America raised its rating on Centene (NYSE: CNC) from Underperform to Buy and raised its price objective from $39 to $46.
Bank of America commented, "We are upgrading CNC shares to Buy (from Underperform) with a view that companies with Medicaid exposure should benefit from coverage expansions outlined in health care reform legislation. Specifically, the market is likely to refocus on revenue growth driven by states transitioning existing beneficiaries to HMOs (from unmanaged fee for service), dual eligible demonstrations and program enrollment that could increase 20% starting in 2014 as projected by the CBO. We are raising our P.O. to $46 (from $39) on P/E multiple expansion."
Centene Corporation closed at $39.87 on Tuesday.
Latest Ratings for CNC
|Sep 2016||Evercore ISI Group||Initiates Coverage on||Buy|
|Sep 2016||Leerink Swann||Downgrades||Outperform||Market Perform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.