FBR Capital Remains Sidelined on Express Scripts (ESRX) Following 2Q Report
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Rating Summary:
6 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 11
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FBR Capital reiterated a Market Perform rating and $75.00 price target on Express Scripts (NASDAQ: ESRX) following the company's 2Q earnings report. ESRX reported revenue of $25.3 billion, slightly below consensus estimates of $25.4 billion. Adjusted EPS grew 9.3% to $1.57.
Analyst Steven Halper commented, "After the close on July 25, Express Scripts reported 2Q16 results. Adjusted EPS were $1.57 versus our estimate of $1.56 and consensus of $1.57. Revenue of $25.3 billion was slightly below both consensus and our estimate. Adjusted EBITDA was a touch below consensus, while EBITDA per claim was in line with consensus. The company maintained its adjusted EBITDA guidance but raised the lower end of its adjusted EPS guidance range given its expectation of a slightly lower average share count. The company did not provide any commentary regarding its current contract dispute with Anthem. We continue to believe there is a good probability that ESRX will either lose the contract or renew it with less attractive terms. Our current target price of $75 assumes that it will lose the contract at the end of 2019. With the shares trading near our target price, our rating remains Market Perform."
For an analyst ratings summary and ratings history on Express Scripts click here. For more ratings news on Express Scripts click here.
Shares of Express Scripts closed at $77.39 yesterday.
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