Zacks Investment Research upgraded shares of Aetna Inc-New (AET) from NEUTRAL to OUTPERFORM on June 21, 2013, with a target price of $73.00.
We are upgrading our recommendation on Aetna to Outperform from Neutral as we gain increased confidence about the company's operations. Aetna has been performing strongly over the past many years and we expect the company to continue performing well going forward, backed by the growth in Medicaid and Medicare segments, fast-growing health services segment, and an expanding provider network. The acquisition of Coventry has enabled the company to position itself strongly in the fast growing Government businesses. Aetna has also made considerable investments in products and technology, with an intention to extend its core health business, and capitalize on exciting new consumer and provider opportunities emerging in the marketplace. Aetna's strong operating results and significant capital generation will enable it to make further investments. A strong balance sheet with low leverage is another positive. However, a low interest rate environment, increased operating cost and a weak economy are some of the near-term headwinds.
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