UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Aetna

In a report published Friday, J.P. Morgan & Co. reiterated its Neutral rating on Aetna

, and raised its price target from $44.00 to $46.00. J.P. Morgan noted, “We recently spent time with AET CFO Joe Zubretsky and Investor Relations Vice President Tom Cowhey in investor meetings, where the focus of discussions were on 2014 reform implementation risks, with the company indicating below avg exposure to exchanges given below average individual and small group margins (although no indication where CVH margins sit – we think small group in-line to above industry avg). Significant time spent on Accountable Care (ACO) strategy, with management indicating details on membership opportunity and economic potential will come at its December analyst day. Looking out to 2013, we got the impression the co is comfortable with street estimates of ~10% EPS growth and plans to be back buying stock post CVH shareholder vote leaving likely return to market post Q4'12 results in early Feb. at latest. Following our meetings, we raise our Price Target slightly to $46 and remain comfortable in our neutral rating and 2012/2013 EPS estimates of $5.10/$5.55.” Aetna closed on Thursday at $39.72.