JPMorgan analyst Calvin Sternick lowered the firm’s price target on Centene to $90 from $94 and keeps a Neutral rating on the shares. The firm believes the managed care group remains fundamentally well positioned coming out of Q4 but adjusted multiples and ratings across the sector to reflect valuations more in-line with historical levels. In addition, the near-term Medicare Advantage rate outlook is disappointing with the Centers for Medicare and Medicaid Services announcing a 2% preliminary rate cut next year versus the market’s expectation for an increase in the range of 0%-2%, the analyst tells investors in a research note.
Published first on TheFly
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