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Stock Market & Financial Investment News

News Breaks
March 20, 2014
10:00 EDTWCG, CI, AETWellCare climbs after analyst says takeover probable
Shares of health insurer WellCare (WCG) are advancing after research firm Leerink wrote that the company is likely to be acquired and upgraded the stock. WHAT'S NEW: WellCare will probably be acquired in the next 18-24 months, Leerink analyst Ana Gupte wrote in a note to investors earlier today. The companies most likely to buy WellCare are Aetna (AET) and Cigna (CI), forecast Gupte after meeting with WellCare's management. The possibility of a takeover will keep WellCare from dropping significantly, while its medium-term outlook is "compelling," the analyst believes. Meanwhile, in 2015, the insurer should benefit from positive Medicare Advantage enrollment trends, wrote Gupte, who finds the stock's valuation compelling. The analyst upgraded the stock to Outperform from Market Perform and has a $74 price target on the shares. WHAT'S NOTABLE: On February 27, Credit Suisse upgraded WellCare to Outperform from Neutral, citing what it saw as the stock's favorable risk/reward ratio, along with favorable Medicaid and Medicare growth trends. The stock will be supported by a potential acquisition, the firm added. PRICE ACTION: In early trading, WellCare climbed $1.57, or 2.4%, to $66.90.
News For WCG;AET;CI From The Last 14 Days
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April 13, 2015
10:58 EDTAET, CI, WCGCigna, Humana seen as potential takeover targets in Managed Care space
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07:33 EDTAET, CI, WCGJefferies sees low probability of WellCare, Centene buyouts
After running several acquisition scenarios for the Managed Care space, Jefferies says potential takeovers of WellCare (WCG) and Centene (CNC) are "hard to justify." The firm estimates acquirers will only be able to generate 1%-3% accretion from buying either company at a 20% premium to current share prices. The deal that makes the most financial sense is Aetna (AET) buying Cigna (CI), Jefferies says today in a note to investors. Also financially attractive would be a buyout of Humana (HUM) by either Anthem (ANTM) or Aetna, the firm adds. After analyzing the Managed Care space, it upgraded this morning shares of UnitedHealth (UNH) to Buy from Hold with a $141 price target. Jefferies also has Buy ratings on Aetna, Anthem, Health Net (HNT) and Molina Healthcare (MOH).

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