Market Overview

UPDATE: Bank of America Downgrades Universal American to Underperform on Operating Outlook

Share:
Related UAM
10 Biggest Mid-Day Losers For Wednesday
Mid-Day Market Update: Carolina Bank Jumps Following Acquisition News; Universal American Shares Decline
Insiders' Week: Sales of Facebook, Walmart (GuruFocus)

Bank of America reduced its rating on Universal American (NYSE: UAM) from Neutral to Underperform and reduced its price objective from $11 to $9.50.

Bank of America said, "We are downgrading UAM shares to Underperform (from Neutral) with a view that companies with Medicare exposure are likely to face an increasingly difficult operating environment under a second Obama term. This includes more reimbursement rate cuts in 2013, the implementation of minimum medical loss ratios and an industry tax in 2014, expiration of STAR bonus payments in 2015 and a cloud of negative political risk. We are lowering our P.O. to $9.50 (from $11.00). Instead, we prefer companies with Medicaid exposure that should benefit from provisions outlined in health care reform legislation."

Universal American closed at $9.20 on Tuesday.

Latest Ratings for UAM

DateFirmActionFromTo
Aug 2015BMO CapitalMaintainsMarket Perform
Nov 2014Bank of AmericaMaintainsUnderperform
Oct 2014Deutsche BankMaintainsHold

View More Analyst Ratings for UAM
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (UAM)

View Comments and Join the Discussion!