Bank of America Merrill Lynch Sees Coventry Health Care as a "Top Trade Idea"

Bank of America Merrill Lynch is out with its report today on Coventry Health Care

, naming CVH as a "top trade idea." In a note to clients, Bank of America Merrill Lynch writes, "Top 3 reasons why CVH is a top trade idea: 1) Screens well on our analysis, 2) We believe that CVH understated its Q1 results (i.e. boosted its reserves), as the only company to show no MLR upside in Q1, 3) CVH looks cheap at only 8.9x our 2012 EPS estimate after adjusting for the over $1 billion (20% of market cap) of deployable cash not in our estimates." Shares of CVH closed Tuesday at $36.51, up 3.43% from Monday's close.