UPDATE: Jefferies Raises PT on WellCare Health Plans Following Stock Surge

In a report published Thursday, Jefferies analyst David Windley reiterated a Hold rating on WellCare Health Plans (NYSE: WCG), and raised the price target from $63.00 to $66.00.

In the report, Jefferies noted, “WCG's 8% stock surge today (HMOs up 1%) seems an overly strong reaction to a solid, but not shocking, 2Q update. WCG's results followed the group trend for 2Q, strong EPS upside and smaller guidance raise. Medicare concerns heading into Wednesday were greater than we thought, and solid MA performance and much improved 2014 PDP bid results assuaged that. We are raising our PT to $66 using a SOTP valuation, and believe WCG is fairly valued.”

WellCare Health Plans closed on Wednesday at $65.28.