Zacks Investment Research upgraded shares of WellPoint Inc. (WLP) from NEUTRAL to OUTPERFORM on July 30, 2013, with a target price of $103.00.
We are upgrading WellPoint to Outperform based on strong second-quarter earnings, improved 2013 guidance, leading market position, diversified product portfolio, efficient capital management and strategic acquisitions. The company's second-quarter earnings surpassed the Zacks Consensus Estimate as well as the year-ago results on the back of higher revenues and membership, which offset the increase in expenses. Reduced long-term debt along with increased shareholder equity and asset balance strengthened the balance sheet, although the cash balance declined. While high expenses, debt-to-capital ratio and benefit expense ratio pose moderate risk to WellPoint, we believe that the company has strong growth potential in the long run.
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