CNC - Centene signals future strategy with new CEO - Jefferies

Issuing remarks on the newly appointed Chief Executive at the health insurer Centene (NYSE:CNC -3.8%), Jefferies argues that the company indicates future divestitures with the selection. Sarah London, who functioned as a Vice-Chairman of Centene (CNC), is set to take over its leadership effective immediately, the company said Tuesday after the close. Previously, London has led the company’s technology and digital strategy as well as Health Care Enterprises and Specialty divisions. She will replace Centene’s longtime CEO, Michael Neidorff required a medical leave of absence in February. However, Jefferies analysts led by David Windley predicts that the news could spark a negative reaction from investors who expected an external candidate to replace Neidorff. “This news may be met with surprise among some investors who believed the search expansion would result in an outside candidate selection and may spur some negative stock reaction Wednesday,” they wrote. Given London’s lack of expertise in

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Centene signals future strategy with new CEO - Jefferies