Market Overview

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

Share:
Related WCG
Wall Street's M&A Chatter From November 17
15 Biggest Mid-Day Gainers For Thursday

In a report published Thursday, Credit Suisse analyst Chris Carter upgraded the rating on WellCare Health Plans (NYSE: WCG) 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.

Latest Ratings for WCG

DateFirmActionFromTo
Nov 2016Credit SuisseUpgradesUnderperformNeutral
Nov 2016JP MorganDowngradesOverweightNeutral
Jun 2016Cantor FitzgeraldMaintainsHold

View More Analyst Ratings for WCG
View the Latest Analyst Ratings

Posted-In: Chris Carter Credit SuisseAnalyst Color Upgrades Analyst Ratings

 

Related Articles (WCG)

View Comments and Join the Discussion!