Wells Fargo cut its price target on Cognizant after Centene (CNC) announced that it would buy Health Net (HNT), a Cognizant client. According to the firm, Cognizant indicated that its $2.7B unsigned outsourcing deal with Health Net was put on hold and probably won;t be signed if the Centene deal closes. Wells Fargo estimates that Congnizant will lose $100M of revenue this year if the deal is not concluded, but the firm notes that the company nonetheless reiterated its 2015 guidance, citing strong business trends. However, Wells cut its price target on Cognizant, citing lower EPS expectations and investors' growing concerns about the outlook of the company's key healthcare vertical market. Wells keeps an Outperform rating on the shares.

Reports Q1 revenue $40.41B, consensus $36.54B. "Centene's first quarter results demonstrate the strength of our diversified platform. We are pleased to raise full year 2024 guidance as we look to maximize the positive momentum being generated by our core businesses. We are executing against our strategic plans for growth and increasing access to affordable, high-quality healthcare for our members and the communities we serve," said Chief Executive Officer of Centene, Sarah M. London.