Deutsche Bank Raising Estimates On Magellan Health (MGLN)

Deutsche Bank is reiterating its Buy rating on Magellan Health Services, Inc. MGLN, as the German investment bank is raising its estimates due to a series of catalysts. It's raising its price target to $53 from $49. In the note sent to investors, Deutsche Bank writes, "1) MGLN is well positioned for health reform since the business is highly leveraged to the Medicaid expansion in 2014. MGLN is already the leading specialty managed care player in Medicaid and the company sees its strongest growth prospects in this market. 2) While the radiology management segment will face a tough comp in 2011 due to the loss of the WLP RBM contract, our channel checks confirm a strong pipeline of new RBM contract opportunities, particularly with state government customers and Medicaid MCOs. We expect the company will return significant cash to shareholders and we forecast a 16% stock repurchase yield over the next twelve months..." Shares of MGLN lost 19 cents on Friday to close at $45.00. Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free.