S&P Capital IQ Downgrades HealthSpring from STRONG BUY to HOLD

October 25 00:00 2011

NEW YORK, October 25 (RainbowNewsLine.com) – Analyst Phillip Seligman of S&P Capital IQ downgrades the shares of HealthSpring (NYSE: HS) from STRONG BUY to HOLD. The 12-month target price has been raised from $47 to $55.

Analyst Phillip Seligman, in a research note published yesterday mentions that the company has agreed to be acquired by CIGNA (NYSE: CI) for $55 a share in cash, which is a 37% premium over October 21 closing price. The deal is expected to close by H1 2012 subject to regulatory and HealthSpring’s shareholders approval. The company will aid CIGNA to spread its Medicare business along with medical cost control through Physician engagements, the analyst says.