UPDATE: Morgan Stanley Initiates Coverage on WellPoint with Equal-Weight Rating on Margin Pressure, Long-Term Growth Potential

In a report published Thursday, Morgan Stanley analyst Andrew Schenker initiated coverage on

with an Equal-Weight rating. In the report, Morgan Stanley noted, “Highest exposure to commercial exchanges and the potential loss of existing small group and individual franchise could pressure margins next year. Increased exposure to the Medicaid through the AGP acquisition should drive long-term growth in this segment.” WellPoint closed on Wednesday at $92.76.