UBS Cuts Price Target on PharMerica (PMC); Risks Continue Building and Mixed Commentary Isn't Settling
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Price: $13.98 -1.48%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade PMC Now!
UBS maintains a 'Neutral' on PharMerica (NYSE: PMC) price target of $11.50 (from $13.00).
Analyst, Steven Valiquette, said, "After competitor OCR’s unsuccessful hostile takeover attempt of PMC earlier this year, shares of PMC continue to underperform as investors ponder the risk of bed attrition issues in the after math. Investors are also concerned that PMC’s second largest customer, Golden Living, may potentially in-source its pharmacy service requirements. PMC has provided mixed commentary on this by first suggesting on the 1Q12 cc that some Golden Living beds were at risk this year, but more recently stating that Golden Living may remain a customer in some capacity into the future."
UBS analyst, Valiquette maintains FY13 EPS estimates of $1.27, which is currently 6x EBITDA (In-line with Street consensus), but he says the low valuation is appropriate considering the company's organic growth challenges.
For an analyst ratings summary and ratings history on PharMerica click here. For more ratings news on PharMerica click here.
Shares of PharMerica closed at $10.42 yesterday, with a 52 week range of $9.03-$16.45.
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Analyst, Steven Valiquette, said, "After competitor OCR’s unsuccessful hostile takeover attempt of PMC earlier this year, shares of PMC continue to underperform as investors ponder the risk of bed attrition issues in the after math. Investors are also concerned that PMC’s second largest customer, Golden Living, may potentially in-source its pharmacy service requirements. PMC has provided mixed commentary on this by first suggesting on the 1Q12 cc that some Golden Living beds were at risk this year, but more recently stating that Golden Living may remain a customer in some capacity into the future."
UBS analyst, Valiquette maintains FY13 EPS estimates of $1.27, which is currently 6x EBITDA (In-line with Street consensus), but he says the low valuation is appropriate considering the company's organic growth challenges.
For an analyst ratings summary and ratings history on PharMerica click here. For more ratings news on PharMerica click here.
Shares of PharMerica closed at $10.42 yesterday, with a 52 week range of $9.03-$16.45.
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