Leerink Partners Positive on Express Scripts (ESRX) New CEO; PT Lowered to $95

Leerink Partners analyst David Larsen cut his price target on Express Scripts (NASDAQ: ESRX) to $95.00 (from $105.00) but maintained an Outperform rating. Larsen said the new CEO is a positive as strategic direction may require consideration.

Larsen commented, "We are hopeful that new CEO, Tim Wentworth, will bring a new strategic direction to ESRX. Recent channel checks indicate service level perception in the market is still challenged relative to peers, and we are concerned about ESRX' ability to drive margin expansion due to limited growth in mail. Despite headwinds, ESRX still trades at a relatively low NTM P/E multiple relative to peers, the company generates significant FCF, management already guided 2016 claims and retention, and ESRX may be able to win some 2017 share from Catamaran given the deal with UNH. PT to $95 (from $105) and we reduce our 2016E EPS outlook, given ongoing headwinds in the market."

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 $82.14 yesterday.

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