J.P. Morgan Maintains Neutral on WellCare Health Plans (WCG)

J.P. Morgan is out with its report today on WellCare Health Plans WCG, maintaining Neutral.

In a note to clients, J.P. Morgan writes, "We consider some premium valuation to the state program/Medicaid businesses (this representing somewhat over half of WCG's top line), which are those most likely to benefit over the longer term from the coverage expansion that will occur as a result of the health reform bill, while we see the nearer-term state budgetary pressures as an offsetting factor. We therefore rate WellCare Neutral."

J.P. Morgan has a $41 PT on WCG.

Shares of WCG closed Monday at $37.21.