J.P. Morgan Maintains Neutral Rating On Coventry Health Care Inc.

J.P. Morgan has released a research report on Coventry Health Care, Inc CVH and has reiterated its ‘neutral’ rating on the stock and price target of $26. According to an analyst at J.P. Morgan, shares of Coventry are currently being traded at 8.1x and 7.4x with 2011 and 2012 earnings estimates, compared to peers trading at 9.7x and 9x. The target price of $26 is based on 9x multiple of 2012 earnings estimates. J.P. Morgan has increased its estimated 2010EPS from $2.80 per share to $3.25 per share. It also raised its 2011 and 2012 estimates to $2.65 and $2.90 respectively.