Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Prudential Upgrades Aetna to Overweight


Prudential upgraded Aetna (AET) to overweight from neutral.

Analyst David Shove says on this morning's call, Aetna's chairman said the health-benefits company's strategy of covering the cost trend and expanding margin through general & administrative savings is a one-year strategy.

The chairman says heading into 2005, Aetna will return to a more conservative, stronger pricing strategy of pricing to cover the cost trend on a percentage basis, allowing for both underwriting margin expansion and general & administrative leverage. This should lift valuation to a more normalized national health-plan multiple of 13 times the forward EPS.

Shove upgraded on the comments, and Aetna's strong execution as shown in its second-quarter report. He upped the $87 target to $103.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus