Bank of America Reiterates Neutral, Target of $47 on Aetna
Bank of America maintains its Neutral rating and $47 price target on Aetna (NYSE: AET) as the company's investor day highlights solid story, but still lags peers in upside.
Bank of America comments, "Our key takeaways from AET's investor day are 1) reiterated l-term EPS growth guidance of 10%+ over time, but wouldn't commit to normalized growth each year; 2) cost trend guidance assumption means that there will likely be upside if utilization remains depressed; 3) provider arrangement are intriguing, but we believe it is premature to get excited about it given limited visibility into the financial benefit; and 4) there is minimal upside to numbers from capital deployment without additional leverage (excess deployable cash is <2% of market cap)."
AET closed at $40.05 per share on Thursday.
