"While 2015 EPS guidance was lower than expected, it embeds conservative cost trend assumptions that we believe set up more consistent EPS (out) performance. After 2015, AET has room to improve margins in several businesses and accelerate EPS growth," analysts said after the diversified healthcare benefits company's Investor Conference yesterday.
"AET's revenue targets of $80 billion plus/$100 billion plus in 2018/2020 imply 10% to 11% CAGR. This is fueled by growth from Government, Private & Public Exchanges, and pricing to trend. Margins likely drift lower from business mix, but capital deployment pushes EPS into the low double digits," analyst added.
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."