Goldman Sachs said it is upgrading Magellan Health (MGLN) to Buy from Neutral based on multiple catalysts for near-term upside, including new risk radiology benefit management contract, potential share buybacks, and positive results in the specialty pharma business. Note solid fundamentals, valuation and no exposure to cyclical pressures weighing on managed care. Price target at $50.

HealthCor Management praised Magellan's growth, but called the company's plan to use its high cash balances to make acquisitions "problematic." HealthCor says that returning cash to shareholders would be the best means of maximizing value. It called for Magellan to use $300 million of its excess cash for this purpose. HealthCor reported holding 2.75 million shares (6.83% of the total outstanding).

Credit Suisse said it is raising its rating on Magelan Health Services (MGLN) to Outperform from Neutral based on valuation. Shares are down 15% in the last three weeks. Raised target to $50 from $49.