UPDATE: BMO Capital Markets Raises PT on Centene Following Investor Day Presentation

In a report published Tuesday, BMO Capital Markets analyst Jennifer Lynch reiterated a Market Perform rating on Centene (NYSE: CNC), and raised the price target from $46.00 to $48.00.

In the report, BMO Capital Markets noted, “Centene's management laid out plans for growth through assorted government programs including Medicaid expansion and dual eligibles (those qualified for both Medicare and Medicaid benefits). The company highlighted a local market strategy that includes positioning both leadership and member services (like call centers) within respective plan geographies. We believe this commitment to market presence makes Centene an attractive partner for states, contributing to the general RFP success enjoyed by the company. We suspect that growth in high-dollar, underpenetrated ABD and Long Term Services markets will help the company further diversify away from TANF. On the Kentucky front, the team noted that while a recent court ruling could delay exit beyond the previously planned July 5, Centene does not anticipate serving the KY market beyond 3Q13. Valuation keeps us cautious with new money here.”

Centene closed on Monday at $50.81.