AET
Aetna Inc.
Healthcare
03/22/2013
Presented
| Date | 03/19/2013 |
| Price | $50.57 |
| Market Cap | $16.60B |
| Ent Value | $20.54B |
| P/E Ratio | 17.68x |
| Book Value | $41.40 |
| Div Yield | 1% |
| Shares O/S | 328.00M |
| Ave Daily Vol | 3,230,000 |
| Short Int | 5.94% |
Current
| Price | $212.70 |
| Market Cap | $69.64B |
| Aetna Inc. operates as a health care benefits company in the United States. It operates through three segments: Health Care, Group Insurance, and Large Case Pensions. The Health Care segment offers medical, pharmacy benefit management services, dental, behavioral health, and vision plans on an insured basis, and an employer-funded or administrative basis. It also provides point-of-service, preferred provider organization, health maintenance organization, and indemnity benefit plans, as well as health savings accounts and consumer-directed health plans. In addition, this segment offers Medicare and Medicaid products and services, and other medical products, such as medical management and data analytics services, medical stop loss insurance, workers' compensation administrative services, and products that provide access to its provider networks in select geographies. This segment offers its products and services to multi-site national, mid-sized, and small employers. The Group Insurance segment provides life insurance products, including group term life insurance, voluntary spouse and dependent term life insurance, group universal life insurance, and accidental death and dismemberment insurance; disability insurance products; and long-term care insurance products, which offer the benefits to cover the cost of care in private home settings, adult day care, assisted living, or nursing facilities. This segment provides its products to employers that sponsor its products for the benefit of their employees and their employees' dependents. The Large Case Pensions segment manages retirement products, including pension and annuity products primarily for tax-qualified pension plans. It offers its products to employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. Aetna Inc. was founded in 1853 and is based in Hartford, Connecticut. |
Highlights
The presenter is long shares of AET and bullish on the company due to its earnings power and the lack of credit the Street is giving it at present; AET’s market multiple should expand from the current level (a ~20% discount to historical norms) given the accretive nature of the Coventry deal, impact reform should have on the industry, and other positive data points. He outlined the following factors supporting his view that the stock could reach $75 over the next 12-18 months:
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