UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Centene Corp. on Solid Top-Line Growth, Margin Risk

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In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on
Centene Corp.CNC
, but lowered the price target from $71.00 to $67.00. In the report, Deutsche Bank noted, “CNC's initial 2014 guidance matches Street but excludes the industry tax. Centene hosted an analyst meeting today to issue 2014 EPS guidance. Heading into the conference the stock has been weak as investors were concerned that CNC would guide light on margin pressure from the industry tax. CNC instead guided in line with consensus but excluded the industry fee from its guidance, meaning that the guidance remains incomplete at this point. CNC remains confident that the states will fully gross up the tax in the Medicaid rates but only has confirmations from 50% of its states at this point, with only a couple of weeks to go until 2014. We maintain Hold rating on above-average top-line growth offset by margin risks.” Centene Corp. closed on Friday at $57.58.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsDeutsche BankGreg Poole
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