NEW YORK (TheStreet) -- Centene (CNC) shares are down 0.73% to $102.19 in early market trading on Tuesday despite the low income healthcare service provider receiving a price target and EPS estimate boost from analysts at Cantor Fitzgerald today.
Analysts at the firm raised the company's price target to $125 from $108 and raised its 2015 diluted EPS estimates to $5.25 from $5 in a note released before the opening bell today.
"CNC's initial guidance for 2015 is significantly higher than prior consensus (FactSet), principally because of higher enrollment and a lower MLR. It's not clear that investors will give CNC much credit for the better loss ratio until it starts posting good numbers next year, but management's growing confidence is a good sign," said analysts at the firm.
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TheStreet Ratings team rates CENTENE CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CENTENE CORP (CNC) 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 robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."