UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Aetna

In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Aetna

, and raised its price target from $52.00 to $56.00. BMO Capital Markets noted, “Aetna closed out a solid year with fourth quarter results that were in line with company expectations, although a disappointment relative to our model. Commercial underwriting margins contracted compared with the year-ago quarter but this was expected. Medical expense benefited from moderate utilization levels in areas impacted by Superstorm Sandy, but this effect was largely offset by more flu cost. Membership was nudged upward by government program enrollment, while commercial risk expectedly lost some members. Looking forward, Aetna reiterated 2013 EPS guidance and fine tuned enrollment projections. The TRS transition to Medicare Advantage should produce a nice lift to the top line. Once completed, the Coventry deal will bring additional earnings power as well as improved scale. We continue to view Aetna as an attractive player in the diversified commercial space.” Aetna closed on Thursday at $48.23.