NEW YORK (TheStreet) -- Credit Suisse increased its price target on Wellcare Health Plans (WCG) to $85, increased its estimates and set an "outperform" rating. The firm believes the company could boost its guidance.
The stock was down 0.41% to $74.72 just after the market opened on Monday.
Separately, TheStreet Ratings team rates WELLCARE HEALTH PLANS INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WELLCARE HEALTH PLANS INC (WCG) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 32.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, WCG has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 104.08% and other important driving factors, this stock has surged by 25.31% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WCG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 104.9% when compared to the same quarter one year prior, rising from $21.52 million to $44.10 million.
- You can view the full analysis from the report here: WCG Ratings Report