UPDATE: Credit Suisse Upgrades WellCare Health Plans as Shares are Poised to Rebound

In a report published Thursday, Credit Suisse analyst Chris Carter upgraded the rating on

from Neutral to Outperform, but lowered the price target from $77.00 to $70.00. In the report, Credit Suisse noted, “We are upgrading shares of WCG to Outperform (from Neutral) as we see attractive risk/reward to our new $70 TP (previously $77). YTD, WCG has underperformed the HMOs (by -17%) and S&P500 (by -16%) given a re-rating in shares following lower 2014 guidance. We view that guidance as achievable and coupled with greater visibility on the 2015 MA rate outlook, believe the stock is poised to grind higher. From a LT perspective, we view WCG as an attractive way to play the favorable growth trends in both Medicaid and Medicare. We also believe take-out potential should provide valuation support and a free call option.” WellCare Health Plans closed on Wednesday at $59.20.