UPDATE: Jefferies Initiates Coverage on WellCare Health Plans with Hold Rating, $65 PT on Multiple NT Risk Factors

In a report published Friday, Jefferies analyst David Windley initiated coverage on WellCare Health Plans WCG with a Hold rating and $65.00 price target. In the report, Windley noted, “We are initiating coverage of WCG with a Hold rating and $65 PT. After the stock's 23% YTD surge (S&P up 11%), valuation is near its historical average. WCG's above-peer margins and Medicare/caid strategy are attractive, but its concentrated Medicaid footprint, lack of RFP wins, and large FL re-procurement present NT risks. We are concerned several events in fall 2013 could disappoint.” WellCare Health Plans closed on Thursday at $57.51.