UPDATE: Morgan Stanley Reiterates On Aetna Following Management Visit

In a report published Tuesday, Morgan Stanley analyst Andrew Schenker reiterated an Overweight rating on

, but removed the $83.00 price target. In the report, Morgan Stanley noted, “While CEO Bertolini suggested utilization and claims severity for initial exchange enrollment was on trend with expectations, he is still cautious on the impact of the surge in late membership and the limited claims data to underlying commercial costs. Specifically, AET has ~500k paid members compared with only 230k in 1Q, but expects some attrition as the year progresses. Separately, AET only booked reinsurance on known claims that triggered the threshold last quarter and sounds cautious on recognizing any risk corridor payments at this time.” Aetna closed on Monday at $74.47.