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UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Centene

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In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Centene (NYSE: CNC), and slightly raised its price target from $39.00 to $40.00.

Deutsche Bank noted, “Centene's third quarter results provide a vivid example of how outsized membership growth can often lead to severe margin challenges if the business is not appropriately priced. CNC produced industry-leading organic revenue growth of 75% in 3Q, but due to the aggressive pricing of new business the company posted an operating loss for the quarter. Given that CNC has now taken a significant premium deficiency reserve, margins should have more cushion over the next few quarters. Nudge up EPS ests and PT but maintain Hold, with strong top-line growth offset by ongoing margin struggles.”

Centene closed on Tuesday at $38.50.

Latest Ratings for CNC

Oct 2017BMO CapitalInitiates Coverage OnOutperform
Oct 2017JefferiesMaintainsBuy
Sep 2017Morgan StanleyMaintainsOverweight

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Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings


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