UPDATE: Jefferies & Company Upgrades Health Net to Hold, Raises PT

In a report published Friday, Jefferies & Company upgraded its rating on Health Net

to Hold, and raised its price target from $17.00 to $26.00. Jefferies noted, “HNT's pricing agreement with California officials is a substantial risk mitigator. It narrows downside earnings risk, improves 2013 EPS, and addresses two key risks (SPDs; Duals) that were elements of our Underperform thesis. HNT is also making progress on a third concern, Commercial performance. We are upgrading to Hold and raising our PT to $26 on the improved outlook. This note analyzes scenarios for 2013 EPS that range to mid-$2.” Health Net closed on Thursday at $25.35.