Morgan Stanley Downgrades Centene Corporation (CNC) to Equal Weight From Overweight

Centene Corporation (NYSE:CNC) is one of the best cheap stocks with huge upside potential. On July 10, Morgan Stanley downgraded Centene Corporation (NYSE:CNC) to Equal Weight from Overweight, bringing the price target down to $33 from $70.

Centene Corporation (CNC) "Was So Brutal," Says Jim Cramer

A doctor holding a clipboard in a hospital ward, discussing patient treatment plan with the nurses.

The firm told investors in a research note that unexpected near-term challenges are currently outweighing the long-term upside levers that were referenced in the firm’s initiation. It also cited Health Insurance Exchange and Medicaid pressure.

Morgan Stanley further said that the latest preannouncement by Centene Corporation (NYSE:CNC) underscored increased utilization in its Medicaid book, while also highlighting that the MA Prescription Drug and Medicare Advantage Plans performed better than expected in Q2.

Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides programs and services to government-sponsored healthcare programs. The company’s operations are divided into the following segments: Medicaid, Medicare, Commercial, and Other.

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Disclosure: None. This article is originally published at Insider Monkey.