In a report released today, Steven Halper from Cantor Fitzgerald reiterated a Buy rating on Centene Corp (CNC), with a price target of $165. The company’s shares opened today at $136.09.
Halper wrote:
“. We reiterate our Overweight rating and $165 price target on CNC shares. Before the market opened, CNC reported strong 4Q18 results and raised its 2019 guidance. 4Q18 results were aided by the Fidelis contribution, as well as solid exchange performance. The company raised its 2019 guidance due to marketplace growth, a contract win for Centurion and CNC’s hospital acquisition in Spain. Late Monday, CNC was awarded a contract in two regions for North Carolina Medicaid managed care. We suspect the company was hoping for a statewide contract. We are not concerned with the 2-region award. The company’s 4Q18 results and revised 2019 outlook still support our positive investment thesis on the shares.”
According to TipRanks.com, Halper is a top 100 analyst with an average return of 20.5% and a 66.2% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Evolent Health.
Currently, the analyst consensus on Centene Corp is a Strong Buy with an average price target of $157.75, representing a 15.9% upside. In a report issued on January 25, Jefferies also reiterated a Buy rating on the stock with a $146 price target.
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Centene Corp’s market cap is currently $26.69B and has a P/E ratio of 27.08. The company has a Price to Book ratio of 2.51.
Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CNC in relation to earlier this year. Most recently, in December 2018, Michael Neidorff, the Chairman & CEO of CNC bought 10,000 shares for a total of $570,200.
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Centene Corp. engages in the provision of programs and services to government sponsored healthcare programs. It operates through the Managed Care and Specialty Services segments. The Medicaid Managed Care segment provides health plan coverage to individuals through government subsidized programs through Medicaid.
