Bank of America Merrill Lynch Maintains Underperform on Magellan Health Services

Bank of America Merrill Lynch is out with its report today on Magellan Health Services (NASDAQ: MGLN), maintaining Underperform.

In its report, Bank of America Merrill Lynch writes, "We expect organic growth to continue lagging peers in our research coverage universe, driven by contract losses from insourcing and margin compression on mean reversion. We see potential in acquiring new solutions in niche high cost trend categories that are most conducive to outsourcing, but MGLN hasn't made a deal like that since 2006."

Bank of America Merrill Lynch maintains a $45 PO on MGLN.

Shares of MGLN closed Thursday at $48.20, down 3.35% from Wednesday's close.