UPDATE: Cantor Fitzgerald Initiates Hold, $45 PT on Aetna on Anticipated Slowdown in Earnings

Cantor Fitzgerald initiates coverage on Aetna

with a Hold rating and a price target of $45. Cantor Fitzgerald notes, "Aetna is not expensive relative to its historical valuations or by comparison with its peers, but rising utilization and tough comparisons with prior year periods that included substantial favorable development suggest that earnings growth will slow over the next two years. The company's enrollment is under competitive pressure, and in an environment that is tough for everyone in the group, we do not see this pressure abating. We would like to see Aetna emphasize Medicare more, and we are encouraged by its recent progress with Medicaid mandates, but these initiatives will take time to implement." AET closed at $41.11 on Tuesday.