Investors should buy Aetna and Humana on the prospect of a better regulatory environment under the newly elected Republican controlled government, according to Credit Suisse, which upgraded the shares of the insurers to outperform from neutral.
"In light of the dramatic Republican sweep of the presidency, Senate and House in the 2016 U.S. elections, our outlook for AET shares is now increasingly brighter under a Trump presidency," analyst Scott Fidel wrote in a note to clients Friday.
"Aetna has centered its future growth strategy around Medicare Advantage, and this program has always garnered exceptionally strong support among Republicans."
In similar fashion, the analyst said the better outlook for Medicare Advantage will also benefit Humana.
Medicare recipients can receive their benefits through Medicare Advantage health plans.