Centene price target lowered to $71 from $79 at Wells Fargo

Wells Fargo analyst Stephen Baxter lowered the firm’s price target on Centene (CNC) to $71 from $79 and keeps an Equal Weight rating on the shares. The firm’s bottom-up analysis of over 2,000 stat filings suggests the potential for meaningful Medicaid margin pressure. Despite deep discounts to historical valuations, Wells thinks it will be difficult for Centene or Molina Healthcare (MOH) to work until expectations are fully reset.