Goldman said WellCare shares weakness is due to the announcement that it plans to book a premium deficiency reserve, or PDR in the range of $1.20-$1.35 earnings in 4Q to reflect its view that the new Iowa Medicaid contract will be net unprofitable over its 3 year contract life. Analyst Matthew Borsch believes WellCare is being conservative in planning the Q4 PDR and notes there is a rate reset on the contract scheduled for the mid-point of year 3t based on actual claims. Borsche believes WellCare can achieve significant profitability in the second half of the 3 year period and reiterates his Buy rating and $111 price target on shares.