WellCare Health Sees Strong Than Expected Medicare Drug Plan Enrollment

Goldman Sachs has published a research report on WellCare Health Plans, Inc. WCG after the company reported that the Medicare drug plan enrollment showed to be stronger than expected. In the report, Goldman Sachs writes "Ahead of an investor presentation later this week, WellCare announced that it expects to add 2,000-3,000 members to its Medicare Advantage (MA) plans and 150,000-160,000 enrollees to its Medicare PDP plans as of Jan. 1. WellCare's Medicare enrollment outlook implies about 2% growth in the MA book (slightly below our 3% estimate) and nearly 25% growth in the Medicare drug plan book (well above our single-digit % growth estimate), and – relative to our current model – the potential for $0.08 and $0.09 upside to our 2011-2012 EPS estimates of $3.00 and $3.45, respectively." Goldman Sachs maintains its Buy rating and current price target. WellCare Health Plans, Inc. closed yesterday at $32.00.