UPDATE: Deutsche Bank Maintains Hold on WellCare Health Plans; Lowers PT from $70 to $61

Deutsche Bank reiterated a Hold rating on WellCare Health Plans

and lowered its price target from $70 to $61. Deutsche Bank wrote, “While 2Q slightly beat, negative development adds risk to 2H12 EPS - While WCG reported 2Q results that slightly exceeded Street consensus, the report included several red flags around reserves that could suggest increased EPS risks over the next few quarters. As a result, we are trimming 2012-2013 EPS ests. We like WCG's balanced mix of Medicare and Medicaid business, improvement in top-line growth and SG&A efficiency, and potential to participate in industry consolidation. However, core underwriting fundamentals seem to be worsening which keep us Hold rated on the stock.” WellCare Health Plans closed at $55.12 on Friday.