UPDATE: Wedbush Raises Coventry Health Care's PT

According to a research report published this morning, Wedbush has increased Coventry Health Care's

PT from $34 to $36. Citi mentioned in the report, “We believe Coventry is at risk for margin compression as the commercial pricing cycle turns due to the company's lower local market share. Coventry's 8% cost trend guidance is above the commercial group average of 6.8%, leading to a spread compression of 150bps vs. 138ps in its peer group. Though we believe Coventry's higher cost trend estimate is mainly due to unit costs, our recent provider survey showed utilization levels may be coming off of multi-year lows.” Wedbush maintains its Underperform rating on Coventry Health Care, which closed Friday at $34.59.