UBS analyst A.J. Rice believes Centene is approaching the end of its discussions with California regulators regarding potential changes in its off-exchange PPO plan. The analyst talked with the company's management that said the state is "comfortable" approving certain of its requested benefit design changes, which along with the 23% price increase the company also requested would get Centene to earnings breakeven on the PPO plan in 2017. Regulators are expected to announce their final position by the end of the month, he notes. The analyst sees the weakness in the stock as a buying opportunity, and reiterates a Buy rating and $80 price target on the shares.

Shares of health care facilities and managed care are in the spotlight on Monday after Florida announced late on Friday five winners of six-year Medicaid managed care contracts. Among the winners... To see the rest of the story go to thefly.com. See Story Here

Wells Fargo raised the firm's price target on Centene (CNC) to $93 from $89 and keeps an Overweight rating on the shares. The firm notes Florida intends to award Medicaid contracts to Centene, Elevance Health (ELV), Humana (HUM) and two provider-run plans. Clearly the most positive for Centene given recent disappointing RFP performance and likely most disappointing for Molina Healthcare (MOH) given expectation for share gains, Wells says.