UPDATE: Deal With Cigna (CI) Does More than Remove Overhang; UBS Upgrades Catamaran (CTRX) to Buy

(Updated - June 11, 2013 8:42 AM EDT)

UBS upgraded Catamaran (NASDAQ: CTRX) from Neutral to Buy with a price target of $68 (from $59). Yesterday it was learned that Cigna Corp (NYSE: CI) announced a ten-year strategic PBM partnering agreement with Catamaran (Nasdaq: CTRX).

Commenting, analyst Steven Valiquette said, "While this deal removes a major overhang, we also believe the benefits for CTRX go beyond just the face value of the transaction. We discussed in previous industry notes the importance for independent PBMs to establish managed care partnerships for exchange plan business tied to health reform. Further, CTRX retains leverage to CI's Medicare Part D positioning."

For an analyst ratings summary and ratings history on Catamaran (NASDAQ: CTRX) click here. For more ratings news on Catamaran click here.

Shares of Catamaran closed at $48.66 yesterday.

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