UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Magellan Health Services After 2014 EPS Guidance is Hit by Industry Fee

In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on

, but lowered the price target from $65.00 to $63.00. In the report, Deutsche Bank noted, “2014 EPS guidance hit by industry fee; LT growth outlook robust at 20%. MGLN's 2014 EPS guidance was worse than we expected as the company expects to be negatively impacted by the industry fee next year by $0.38/share. MGLN is however projecting decent revenue growth of +3-8% despite significant headwinds from the loss of the Maricopa and Horizon contracts next year ($750 mln or 21% of total revenue). Beyond 2014, management issued robust LT growth targets with a 20% CAGR expected for both revenue and EPS. Reaffirm Buy based on robust LT growth prospects, strong free cash flow and pristine balance sheet.” Magellan Health Services closed on Tuesday at $56.97.