S&P Equity Research Maintains BUY Rating on Shares of Aetna

October 04 00:00 2011

NEW YORK, October 4 (RainbowNewsLine.com)- Analyst Phillip Seligman of S&P Equity Research maintains his BUY rating on the shares of Aetna (NYSE: AET). The target price is set to $49.

Analyst Phillip Seligman, in a research note published yesterday, mentions that Aetna has completed the acquisition of PayFlex Holdings, which is an account-based health plan administrator with 3,300 employer customers and 1 million accounts. Furthermore, they have completed the acquisition of Genworth Financial (NYSE:GNW) which is in Medicare Supplement Business with over 150,000 members. The analyst believes such acquisitions will open new sources of revenue, will aid in enlarging their scale of operations, and such hybridization will qualify them to perform better than most insurers in midst of health care reforms. The analysts expect the acquisition to be earnings neutral during 2011 and 2012 and to be EPS accretive afterwards.