Goldman Sachs Upgrades Aetna to Buy (AET)

Goldman Sachs is out with a research report this morning, where it upgrades shares of Aetna AET to Buy, from Neutral; it has a $44.00 price target on the stock, up from $37.00. The GS analysts said that they are upgrading Aetna to Buy from Neutral, reflecting their now-higher view of 2011-12 EPS and new 12-month price target of $44 ($37), implying 18% upside. They analysts added that AET shares have lagged the group even after the 12% gain on Friday (Feb. 4, vs. S&P +0.3%) and they believe AET shares are poised to catch-up. Recent channel checks have eased the analysts' previous concerns on Aetna's service execution while confirming the company is now leading the group in price discipline.