UPDATE: Bank of America Upgrades WellPoint as Exchange Risk Lessens

In a report published Friday, Bank of America analyst Kevin Fischbeck upgraded the rating on WellPoint (NYSE: WLP) from Underperform to Neutral, and raised the price target from $90.00 to $98.00.

In the report, Bank of America noted, “As details around the exchanges start to come into view, we now think that the exchanges will be less disruptive than initially feared, causing us to upgrade WLP to neutral. WLP still has some operational risks, as much of its growth is slated to come from government businesses which it historically has not run well. With a new CEO in place this year and the addition of AGP management we are cautiously optimistic that WLP will perform but we will need to see improved execution before we get more aggressive. As a result, we continue to see more upside/less risk at other names (Top Pick CI).”

WellPoint closed on Thursday at $88.46.