Monday, December 17, 2007

WellCare Health Plans (NYSE:WCG): Target upped to $66 from $50 at Jefferies

- Jefferies is upping their tgt on WellCare Health Plans (NYSE:WCG) to $66 from $50 saying general indications from their proprietary Medicare Advantage broker survey indicate that while sales are not likely to meet last year's levels, concerns that WCG MA enrollment could meaningfully decline in '08 as a result of the recent investigation are over done.

Raising their MA enrollment outlook to just a 5k decline from prior view of a 27k decline, though enrollment gains appear more likely. The firm is maintaining their '08 estimate as they incorporate even greater legal and compliance expenditures than they had previously modeled.

Reits Buy.

Notablecalls: WCG has seen a nice rebound, up 7-8 bucks since I highlighted it as an Actionable call 3 weeks ago. I think today's call from Jefferies will generate some further buy interest, say 1-2 bucks worth.

3 comments:

notablecalls said...

Hearing a trading error at GSCO caused the spike down.

NC

Timothy Hussar said...

6 bucks down, that's a pretty sizable error

notablecalls said...

Seen worse.

NC