Bank of America Reiterates Underperform, $44 Target on Magellan Health Services

Bank of America maintains its Underperform rating and $44 price target on Magellan Health Services, Inc.

as it continues to believe organic growth will lag peers. BofA says. “WCG ($56.06, Neutral, C-2-9), which is MGLN's largest Medicaid behavioral health customer accounting for $100 million in annual revenue, planned to manage [Medicaid health plan RFP] benefits in house. If this is a new strategy, MGLN is no longer aligned with any HMO competitive in RFPs and it is damaging to the bull case that MGLN is a backdoor play on the Medicaid RFP pipeline.” MGLN closed at $49.88 per share on Wednesday.