The analyst firm raised its 2015 EPS estimate for the health care plan provider to $7.30 a share from $6.93 a share, above consensus estimates of $7.11 a share.
Leerink analyst Ana Gupta said the higher price target "reflects what we expect will be a year of modest Commercial margin expansion by at least 25 bps in 2015 and reverses our EPS lowering after weak Commercial MLR performance in 3Q14. In the bull case, Commercial MLR could improve by 50 bps with 2015 EPS of ~$7.45 though we expect any potential for accelerating cost trend per capita would make that less likely."
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Separately, TheStreet Ratings team rates AETNA INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AETNA INC (AET) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."