Jefferies Raises Price Target on Aetna (AET)
Jefferies reported on Wednesday that it has raised its price target on insurance provider, Aetna Inc.(AET).
The firm has reaffirmed a “Buy” rating on AET, and had increased the company’s price target from $58 to $61. This price target suggests a 20% increase from the stock’s current price of $48.63.
An analyst from the firm commented, “AET is our favorite Managed Care stock with 27% upside to our $61 price target (up from $58). Pro-forma for the CVH acquisition (close expected mid-2013), AET is the cheapest at 7.5x 2014E EPS. We believe the company’s 2013 guidance is conservative, and that AET will deliver, if not exceed, the $0.45-0.90 EPS accretion guidance in 2014-15. This should enable AET to achieve a LT EPS CAGR in the low-to-mid teens.”
Aetna shares were up 88 cents, or 1.84% during Wednesday morning trading. The stock has increased 6.8% in the past year.
The Bottom Line
Shares of Aetna Inc.(AET) have a 1.63% yield, based on Wednesday morning’s price of $48.98.
Aetna Inc.(AET) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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