UPDATE 1-Analysts say Aetna's lowered outlook achievable

July 28 (Reuters) - At least three brokerages cut their price targets on Aetna Inc (AET.N), after the health insurer slashed its 2009 earnings forecast due to higher-than-projected medical costs, but analysts said the lowered outlook is achievable.

"It took a long time to get to this point, but after a nearly 30 percent reduction to EPS guidance this year, Aetna's projected earnings are finally in a reasonable and achievable range," analysts at Oppenheimer wrote in a note to clients.

Oppenheimer lowered its 2009 and 2010 earnings estimate for the company and cut the price target on the stock to $32 from $38.

Cowen & Co upgraded Aetna to "outperform" from "neutral", saying it expects the stock to trade at a premium to the sector over the next 12 to 18 months.

"With Aetna shares trading at a discount to WellPoint Inc (WLP.N) and UnitedHealth Group (UNH.N), we see 2010 projected earnings as more secure at current levels," analysts at Cowen said, adding the company's 2009 earnings forecast is achievable.

Goldman Sachs removed Aetna from its Americas Conviction Sell List, but kept its "sell" rating on the stock.

Shares of the company rose 10 percent to $28.34 in morning trade, making them one of the top percentage gainers on the New York Stock Exchange.

"For now, investors appear to willing to look beyond the earnings cut. The view is that Aetna has now sufficiently lowered the bar such that second half of 2009 earnings targets are achievable, with some recovery possible in 2010 as Aetna pursues a strategy of corrective pricing," Goldman analysts said.

However, it remains to be seen whether the company can sustain the pricing strategy into 2010 particularly if the industry pricing environment becomes less favorable going into next year, said Goldman analysts, who kept their six-month price target of $23 on the stock.

Separately, Citigroup cut the price target on Aetna stock to $36 from $41, saying the cut in full-year outlook was more than it had expected. The brokerage has a "buy" rating on the stock.

UBS also cut its price target on the stock to $30 from $32 as it revised its 2010 earnings estimate for the company. (Reporting by Shailesh Kuber in Bangalore; Editing by Deepak Kannan)