UBS Maintains a 'Neutral' on CVS Caremark (CVS); Raising ‘13 EPS for Generics/PBM Mojo

UBS maintains a 'Neutral' on CVS Caremark (NYSE: CVS) price target raised from $45 to $48.

UBS analyst says, "Walgreen (NYSE: WAG) / Express Scripts (Nasdaq: ESRX) Impasse Still Represents Upside to 2012 Estimates: We note that our current 2012 EPS estimate still does not include any upside for CVS’ retail operations from the ongoing WAG/ESRX dispute. We previously believe resolution could occur in the Mar/Apr time period once the FTC gives a view on the ESRX/MHS merger, but WAG comments Wed suggest it could be prolonged further given the company’s ‘tough talk’ regarding Medco (NYSE: MHS)."

"...we raise our 2013 EPS estimate for CVS from $3.58 to $3.68 (Street $3.64) to better reflect leverage to the current generic cycle, and the ‘spillover effect’ of major 2H12 multi-source generic launches into calendar ‘13."

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 $42.15 yesterday.

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