NEW YORK (AP) — A Goldman Sachs analyst said shares of Aetna Inc. and Amerigroup Corp. should trade higher after the two managed care providers reported their third-quarter results.
In notes to clients published Sunday, analyst Matthew Borsch added Aetna shares to his Conviction Buy list, a portfolio of stocks with strong recommendations. He said Aetna stock is trading at a discount compared to shares of competitors UnitedHealth Group Inc. and WellPoint Inc.
Borsch also said he is less concerned about profit margins for Medicaid coverage providers like Amerigroup, and he upgraded the stock to "Buy" from "Sell."
Aetna reported its third-quarter results Wednesday. Borsch said Wall Street was concerned the Hartford, Conn., company would issue a disappointing profit outlook for 2012. Aetna said it expects to earn at least $4.80 per share, and Borsch said that pleased analysts.
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