UPDATE: Bank of America Upgrades Centene to Buy on Health Care Reform Tailwinds

Bank of America raised its rating on Centene

from Underperform to Buy and raised its price objective from $39 to $46. Bank of America commented, "We are upgrading CNC shares to Buy (from Underperform) with a view that companies with Medicaid exposure should benefit from coverage expansions outlined in health care reform legislation. Specifically, the market is likely to refocus on revenue growth driven by states transitioning existing beneficiaries to HMOs (from unmanaged fee for service), dual eligible demonstrations and program enrollment that could increase 20% starting in 2014 as projected by the CBO. We are raising our P.O. to $46 (from $39) on P/E multiple expansion." Centene Corporation closed at $39.87 on Tuesday.