Centene To Benefit From Illinois ABD RFP And Medicaid

Analysts at Citigroup initiate coverage of Centene CNC with a "buy" rating. The target price for CNC is set to $27. According to Citigroup, “A significant portion of Centene’s revenue was up for bid in the first half of 2010, but the next six months look better, as none of the company’s existing contracts are up for renewal, and Centene has an opportunity to expand its business through the Illinois ABD RFP, among others. Centene is also likely to compete for the New Mexico behavioral health RFP, although the likelihood of success for this opportunity isn’t as great.” “With the commercial business shrinking and both commercial and Medicare margins under pressure, Medicaid is one of the few areas in health insurance with significant revenue growth prospects over the next few years, both from new state opportunities and the coming Medicaid expansion in 2014,” the analysts say. More Analyst Ratings here.