UPDATE: Deutsche Bank Reiterates Magellan Health Services at Buy Following Contract Loss

Deutsche Bank reiterated Magellan Health Services

at Buy with a $61 price target. Deutsche Bank noted, "MGLN disclosed in an 8-K today that a large Commercial health plan customer has notified the company that it will not renew its existing contract beyond the current term, which expires on December 31, 2013. The contract generated $144.5 mln in revenue through the first three quarters of 2012. Since the contract runs through the end of 2013, MGLN made no changes to 2013 guidance. We are removing this contract from our model and as a result trim our revenue and EPS estimates for 2014. We continue to forecast double-digit EPS growth in 2014." Magellan Health closed at $51.75 on Friday.