Coventry Health Care "neutral weight," target price raised

03/20/07 - Prudential Financial

NEW YORK, March 20 (newratings.com) - Analyst David H Shove of Prudential Financial reiterates his "neutral weight" rating on Coventry Health Care (CVH), while raising his estimates for the company. The target price has been raised from $55 to $57.

In a research note published this morning, the analyst mentions that the company has won several important contracts and has indicated that the Concentra deal would be closed sooner than expected. The Concentra deal will be accretive to Coventry Health Care’s EPS shortly after closure, the analyst says. The company has raised its share buybacks, Prudential Financial adds. The EPS estimates for 2007 and 2008 have been raised from $3.88 to $3.94 and from $4.30 to $4.38, respectively.