Skip to main content

Market Overview

KeyBanc Initiates Magellan At Sector Weight

KeyBanc Initiates Magellan At Sector Weight

KeyBanc analysts believe Magellan Health Inc (NASDAQ: MGLN)'s dearth of experience in handling Medicaid populations will likely take away from the company's ability to win state procurement from more seasoned competitors. Thus, the bank initiated coverage on Magellan Thursday with a Sector Weight rating. No price target was set.

Adding to the analysts' concerns were declining operating margins, which they attributed to contract losses, and rising competitiveness. New businesses have produced lower profitability also.

Related Link: In Wake Of Orlando Shooting, Here Are Some Positive Business Responses

On the bright side, those new products, combined with recent acquisitions, have helped the company's pharmacy segment to drive top-line growth. Low net debt levels and cash flow generation could result in continued buybacks and more acquisitions.

KeyBanc still takes a cautious view, however. Although intrigued by Magellan's strong capital position and the pharmacy segment growth, until the likelihood of winning Medicaid contracts seems to improve, KeyBanc will stay on the sidelines.

Latest Ratings for MGLN

Jan 2021JefferiesDowngradesBuyHold
Jan 2021Stephens & Co.DowngradesOverweightEqual-Weight
Sep 2020B of A SecuritiesMaintainsBuy

View More Analyst Ratings for MGLN
View the Latest Analyst Ratings


Related Articles (MGLN)

View Comments and Join the Discussion!

Posted-In: KeyBanc MedicaidAnalyst Color Long Ideas Initiation Analyst Ratings Trading Ideas

Latest Ratings

PHXSeaport GlobalInitiates Coverage On
AFCGLake StreetInitiates Coverage On29.0
OSSNoble Capital MarketsUpgrades7.0
NCNOGabelli & Co.Upgrades
HAECJS SecuritiesUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at