UPDATE: Deutsche Bank Raises Target on WellCare Health Plans to $70

Deutsche Bank increases its price target on Hold-rated WellCare Health Plans

to $70, up $10, as the company issues guidance of 11 to 16 percent growth in EPS. Deutsche Bank says, "WCG generated 152% EPS growth in 2011 as the pre-tax margin more than doubled to 7.5% from 3.5% in 2010. Similar to AGP (Buy, $70.18) a year earlier, WCG's earnings enjoyed a major boost from prior period reserve development which accounted for 59% of 2011 EPS. WCG issued 2012 guidance that assumes 16% revenue growth and margins at the high-end of the LT range of 3-5%. We raise EPS ests but maintain Hold based on valuation." WCG closed at $68.74 a share on Wednesday.