UPDATE: Piper Jaffray Raises PT on Healthways to $13 (HWAY)

Piper Jaffray is out with its report today on Healthways (NYSE: HWAY), increasing its price target from $11 to $13.

In a note to clients, Piper Jaffray writes, "The company missed revenues but reported inline EPS. Due to the startup costs associated with the new large contracts, the company's FY10 margin outlook was weak. We expect the company to see significant earnings impact in the 1H'11 and improvements throughout the year. We are excited about the shift towards a provider-focused model and believe this could position the company in an advantageous position to benefit from the ACOs. We will be more constructive if the company can show traction. Maintain Neutral, increasing PT to $13 based on 10x CY12E EPS of $1.29."

At the time of posting, shares of HWAY were trading at $13.49, up 5.80% from Tuesday's close.