Coventry Raised to Outperform - Analyst Blog
24 4월 2013 - 10:50PM
Zacks
On Apr 23, 2013, we upgraded Coventry Health Care
Inc. (CVH) to Outperform based on strong fundamentals,
reflected by higher revenues, strong balance sheet, efficient
capital deployment and stable ratings. Moreover, this Zacks Rank #2
(Buy) company is improving its operating efficiencies through
acquisitions and expansions.
Why the Upgrade?
Coventry’s imminent takeover by Aetna Inc.
(AET), scheduled to close by mid-2013, is projected to be
beneficial for the company. Aetna is a comparatively larger company
than Coventry with a stronger market position and higher credit
rating.
Moreover, Coventry uses its free cash for share repurchases and
acquisitions, thereby improving the bottom line. The company
repurchased 9.9 million shares for $328 million in 2012, thus
leaving 6.5 million shares under its existing repurchase
authorization as on Dec 31, 2012.
Further, the improved sales and the retention process
implemented since 2009 has transformed Coventry’s Commercial Risk
business into a profitable one. The business contributed 41% of the
total operating revenue in 2012. Going ahead, the business is
likely to continue contributing to the company’s earnings.
Coventry reported positive earnings surprise in 3 of the 4
quarters in 2012, with an average beat of 12.2%. The company is
expected to report its first-quarter earnings before the opening
bell on May 1, 2013. The Zacks Consensus Estimate for Coventry’s
first quarter is currently pegged at 79 cents, representing a
year-over-year increase of 26.8%.
Other Stocks to Consider
Other health maintenance organizations worth considering are
Health Net Inc. (HNT) – Zacks Rank #1 (Strong Buy)
and WellCare Health Plans Inc. (WCG) – Zacks Rank
#2 (Buy).
AETNA INC-NEW (AET): Free Stock Analysis Report
COVENTRY HLTHCR (CVH): Free Stock Analysis Report
HEALTH NET INC (HNT): Free Stock Analysis Report
WELLCARE HEALTH (WCG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Coventry Hlth Care (NYSE:CVH)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Coventry Hlth Care (NYSE:CVH)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024