On Thursday, Jefferies reported that it has raised its price target on health benefits company, Aetna Inc (AET).
The firm, which currently has a “Buy” rating on AET, has increased the company’s price target from $69 to $74 as a result of its acquisition of Coventry Health Care. This price target suggests a % upside from the stock’s current price of $60.44.
Analyst David Windly noted, “the company’s diversified business, strong execution, modest exposure to Exchange risk, and low-to-mid teens EPS growth make AET our favorite MCO.”
“At 9.5x 2014E EPS, AET is second cheapest in the group with the most attractive risk/reward profile.”
Looking forward, the firm increased its second quarter earnings estimates from $1.33 per share to $1.40 per share. For FY2013, earnings estimates have been lifted from $5.59 per share to $5.83 per share. FY2014 earnings were increased from $5.89 per share to $6.40 per share.
Aetna shares were mostly flat during Thursday morning trading. The stock is up 31% YTD.
The Bottom Line
Shares of Aetna Inc (AET) have a 1.33% yield, based on Wednesday’s closing price of $60.29.
Aetna Inc (AET) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.