Morgan Stanley Raises EPS Forecast For WellPoint (WLP)

Morgan Stanley has modified its earnings per share forecast for WellPoint WLP upwards. In today's research report, Morgan Stanley stressed that “We are raising our WLP EPS forecasts for 2011/ 2012/2013 by 7-8%, from $6.60/$7.40/$8.20 to $7.10/ $7.90/$8.75.” Morgan Stanley also stressed this might still be a conservative estimate. Its research report states, “In our view, WLP is tracking towards a multi-year period in which two favorable trends will help drive earnings momentum: (1) the return of meaningful positive G&A leverage and (2) continued sizeable share count reductions. In fact, these two swing factors are primary reasons we believe our forecasts may still be ~5+% conservative.” Morgan Stanley has set its target price for WellPoint's shares to $90. Morgan Stanley currently has an Overweight rating on WellPoint. On Wednesday, WellPoint's shares closed the day on $75.54.