Humana & Aetna: Why Blocked Merger Mean Slashed Ratings

Yesterday, a Federal judge blocked the merger of Aetna ( AET ) and Humana ( HUM ), arguing that they would illegally reduce competition among health insurers . The initial reaction was simple: The news was good for Humana--its shares rose 2.2%--and bad for Aetna--its shares dropped 2.7%. Today, however, both stocks got downgraded, Aetna at Leerink , and Humana at Stifel . Leerink's Ana Gupte explains why she cut Aetna to Market Perform from Outperform...