Goldman Sachs Reduces Estimates on Magellan Health Services (MGLN)

Goldman Sachs is out with its report on Magellan Health Services MGLN and reduces its EPS estimates on MGLN. In a note to clients, "Magellan provided initial 2011 guidance. Specifically,management forecasts EPS of $2.84-$3.33 (excluding future share repurchases), and revenues of $2.77bn-$2.93bn (vs. our previous estimate of $3.09 mn and consensus of $3.01 bn). In addition, management maintained 2010 guidance for EPS of $3.66-$4.07 (vs. our estimate of $4.04 and consensus of $3.99). We are adjusting our 2011/2012 EPS forecasts to $3.41/$3.80 from $3.75/$4.21 on lower enrollment/PMPM." Goldman Sachs maintains its Neutral rating and $50 price target on MGLN. MGLN is trading at $45.88.