Centene management focuses on the pipeline of opportunity as well as addressing any gaps in capabilities, BMO Capital noted.
"We believe significant expansion and diversification have reduced the risk related to new starts and state-specific dynamics that can lean on the medical loss ratio (MLR) from time to time," BMO Capital analysts said.
The team's approach to capital management remains unchanged, with a comfortable debt to capitalization in the mid-to high 30s and a willingness to issue equity for deals when feasible, BMO Capital added.
Centene is a healthcare company that offers government-sponsored healthcare programs by assisting in accessing care, coordinating referrals to related health and social services, providing education and outreach programs.
Separately, TheStreet Ratings team rates CENTENE CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CENTENE CORP (CNC) a BUY. This is driven by several positive factors, 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, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."