Jefferies Issues Hold Rating For CVH

Jefferies has issued a Hold Rating and $33.00 PT for Coventry Health Care (CVH).

According to Jefferies, " We are initiating coverage with a Hold rating and a $33 price target. Like many other managed care companies, Coventry has benefitted from low utilization; however, Healthcare Reform poses challenges in 2011. New Commercial MLR minimums and PDP membership losses are two challenges. On the bright side, the company does have a significant amount of cash to make opportunistic acquisitions."

Coventry Health Care closed at $29.88 yesterday.