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Jefferies Maintains a 'Buy' on CVS Caremark (CVS); A Superior Model

February 10, 2012 7:20 AM EST
CVS Hot Sheet
Rating Summary:
    7 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Jefferies maintains a 'Buy' on CVS Caremark (NYSE: CVS) price target raised from $47 to $50.

Jefferies analyst says, "While it has taken longer and been rockier than expected, the promise of the vertically integrated CVS Caremark is finally starting to be realized. The company’s significant competitive advantage of an integrated platform, demonstrated in offerings such as Pharmacy Advisor and Maintenance Choice, is leading to market share gains in both its retail and PBM operations. We believe this will prove increasingly disruptive to competitors."

"We are establishing 1Q12 EPS estimate of $0.63 and increasing our FY12 and FY13 estimates to $3.24 and $3.55 from $3.21 and $3.50. A good chunk of the improvement, but not all, is due to the business flowing from Walgreens (NYSE: WAG)."

For an analyst ratings summary and ratings history on CVS Caremark click here. For more ratings news on CVS Caremark click here.

Shares of CVS Caremark closed at $43.00 yesterday, with a 52 week range of $31.30-$44.09.


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