Morgan Stanley Raises EPS Forecast For WellPoint (WLP)

Morgan Stanley has modified its earnings per share forecast for WellPoint (NYSE: WLP) upwards.

In today's research report, Morgan Stanley stressed that “We are raising our WLP EPS forecasts for 2011/ 2012/2013 by 7-8%, from $6.60/$7.40/$8.20 to $7.10/ $7.90/$8.75.” Morgan Stanley also stressed this might still be a conservative estimate. Its research report states, “In our view, WLP is tracking towards a multi-year period in which two favorable trends will help drive earnings momentum: (1) the return of meaningful positive G&A leverage and (2) continued sizeable share count reductions. In fact, these two swing factors are primary reasons we believe our forecasts may still be ~5+% conservative.”

Morgan Stanley has set its target price for WellPoint's shares to $90. Morgan Stanley currently has an Overweight rating on WellPoint.

On Wednesday, WellPoint's shares closed the day on $75.54.