Somebody likes managed care stocks. Charles Boorady of Credit Suisse has initiated coverage of the managed care sector with an “overweight” or “buy” rating. He says investors should buy Coventry, Humana, UnitedHealth and WellPoint, with United being his top pick. He rates as “hold” Amerigroup, Centene, Cigna, Health Net, Molina and Triple-S. He has no “sell” ratings. Notes Boorady, “Winners and losers will emerge in managed care. Winners will have access to public equity capital and invest strategically to offset margin compression by taking market share from 1,200 insurers that may not survive, low-cost to compete on price through exchanges, M&A track record; Medicare, Medicaid & HMO experience; and real-time HCIT capabilities to coordinate with physicians implementing electronic health records and ACOs.”
Boorady is Bullish on Managed Care
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