UPDATE: Credit Suisse Upgrades Aetna

In a report published Thursday, Credit Suisse analyst Chris Carter upgraded Aetna (NYSE: AET) from Neutral to Outperform, raising its price target to $83.00 from $69.00.

According to the report, as an upside is seen to 2014 guidance from a continuation of muted cost trends and potential for additional CVH synergy, AET has been upgraded to Outperform.

“Moreover, while there is uncertainty associated with hc reform, our analysis around new exchange lives and Medicaid expansion gives us comfort that any potential downside risk is limited and/or manageable,” the report said. “We are raising our estimates and increasing our TP to $83 (from $69), and view discounted valuation as attractive. Aetna is our new top pick in Managed Care and the Credit Suisse Investment Policy Committee (IPC) is adding AET to the U.S. Focus List.”

Some highlights from the report included:

-Muted cost trends expected to persist. -Comfort in downside risk. -CVH deal provides upside.

AET closed Wednesday at $69.72 with shares trading up at 1.02 percent.