UPDATE: Bank Of America Upgrades WellPoint Inc

In a note released Monday morning, Bank of America analyst Kevin Fischbeck upgraded shares of WellPoint Inc (NYSE: WLP) from Neutral to Buy and raised the price objective from $125 to $140.

Fischbeck wrote, "The current valuation overly discounts HC Reform risks and undervalues the company's growth profile and competitive scale advantage."

As support for his optimistic view, Fischbeck pointed to the company's expectations for increased EPS despite significant headwinds for its small group EBIT, as well as "best in class" unit costs and SG&A.

Looking ahead, Fischbeck is predicting an ESP of $8.80, $9.45,and $10.49, respectively, from 2014-2016.