Citi Comments on 2Q Results at Magellan

Citi has published a report on Magellan Health Services MGLN analyzing 2Q results. In the report, Citi wrote, "Both Louisiana and Massachusetts have released Medicaid behavioral health RFPs recently. We have some details on Louisiana, which suggest the opportunity could be worth over $700 million in annual revenue to the one successful vendor the state intends to select. RFP responses in Louisiana are due on August 15, and an award is scheduled for September 6. In addition, Magellan recently signed an expansion of its existing contract in Iowa, a deal that will add $60 million in revenue." Citi rated Magellan a Medium Risk BUY with a price target of $58.00. Magellan closed Friday at $52.10.