UPDATE: Credit Suisse Reiterates On WellCare Health Plans On Model Update Post 3Q14

In a report published Tuesday, Credit Suisse analyst Chris Carter reiterated an Outperform rating on WellCare Health Plans (NYSE: WCG), and raised the price target from $72.00 to $80.00.

In the report, Credit Suisse noted, “We have revisited our WCG model following 3Q14 results. We have lowered our 2014 and 2015 EPS estimates to $2.30 (from $2.47) and $3.60 (from $4.40), respectively, but maintain our 2016E EPS of $5.30. Our revised model reflects 3Q14 actuals and updated assumptions around 2015. We view 2015 as more of a stabilization/rebuilding year with a glide path to continued improvement in profitability in 2016+. We roll forward our target P/E to our 2016E EPS and thus are increasing our TP to $80 (from $72), which assumes WCG can trade at 15x our ‘16E EPS.”

WellCare Health Plans closed on Monday at $70.03.