Aetna (AET) To Remain Weak: Barron’s
By Benzinga Staff
February 08, 2010 2:53 PM
February 08, 2010 2:53 PM
Aetna (NYSE: AET) announced lower-than-expected Q4 earnings. Its profit figure was down by 14.8% to $165.9 million. However, its revenue rose to $8.76 billion, surpassing estimates. Market estimates had pegged the revenue figure at $8.55 billion.
Its shares are currently trading at the multiple of 10X. According to Barron’s, Aetna is currently trading at a premium in comparison to its peers and the premium is not justified. Aetna is further expected to deteriorate on account of the health care bill provisions. Aetna’s EPS growth is likely to remain flat in 2010.
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