Barclays starts health care facilities, managed care group with Neutral view

Barclays last night initiated coverage of the health care facilities and managed care group with a Neutral industry view. The firm “tilts positively” toward facilities with durable volume growth and managed care organizations that have a differentiated mix of earnings toward the Affordable Care Act exchanges and commercial segments. It is more cautious on Medicare. Barclay’s top Overweight-rated names include Centene (CNC), Cigna (CI), Encompass Health (EHC) and Tenet Healthcare (THC). Its other Overweights are Acadia Healthcare (ACHC), Elevance Health (ELV), HCA Healthcare (HCA) and UnitedHealth (UNH). The firm’s notable Equal Weight-rated names are CVS Health (CVS), Humana (HUM), Surgery Partners (SGRY) and Privia Health (PRVA). Barclays put Underweight ratings on Agilon Health (AGL) and Alignment Healthcare (ALHC). Reimbursement challenges, increasing cost trend, and slowing senior growth make the Medicare Care investment case less compelling now than at any point in the last ten years, the analyst tells investors in a research note.