WellCare may be in talks with Ascension Health, says Leerink Leerink notes that according to Modern Healthcare, not-for-profit Hospital and Health system Ascension Health referred to being in talks on a possible deal with an unnamed 18-state health insurer. Leerink believes the unnamed insurer is most likely WellCare (WCG), which is in 18 states with Managed Medicaid and Medicare Advantage. The firm thinks Centene (CNC) is also a possibility. Leerink says it is more positive on shares of WellCare and Centene as it believes any deal could catalyze more Hospital-Health plan transactions. Shares of WellCare and Centene are moving higher in early trading.
WellCare valuation compelling after selloff, says Leerink Leerink views the valuation of WellCare shares as compelling following the company's "solid" Q1 results. The firm reiterates an Outperform rating on the stock with a $105 price target.