Centene initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald analyst Sarah James initiated coverage of Centene with an Overweight rating and $80 price target. The company is a leader in the "high-growth" Medicaid managed care industry and its efficient cost structure and high acuity expertise position it to "gain more than its share" in the next legs of health insurance exchange, the analyst tells investors in a research note. The firm believes the risk from redetermination headwinds is built into the stock, but not the potential for faster health insurance exchange growth.