Goldman Sachs Upgrades Catamaran (CTRX) to Conviction Buy
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Price: $48.06 --0%
Rating Summary:
3 Buy, 1 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 9 | Down: 11 | New: 13
Rating Summary:
3 Buy, 1 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 9 | Down: 11 | New: 13
Trade CTRX Now!
Goldman Sachs added Catamaran (NASDAQ: CTRX) to its Conviction Buy List with a price target of $120.00, citing attractive risk/reward.
The firm notes shares are down 5% since the SXC/Catalyst deal closed despite a better-than-expected operational outlook and positive commentary around synergy
opportunities and M&A prospects.
"While valuation has been a source of concern, we note that P/E on 2013E has already fallen 18% from pre-deal levels," the analyst comments. "In fact, the spread between CTRX and ESRX is now just six multiples points on our 2015 estimates for each company and we think CTRX’s likely higher outer year growth (we model 19% post 2015 CAGR versus ESRX’s 14% which does not include additional M&A) provides enough support."
For an analyst ratings summary and ratings history on Catamaran click here. For more ratings news on Catamaran click here.
Shares of Catamaran closed at $91.95 yesterday, with a 52 week range of $83.34-$95.18.
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The firm notes shares are down 5% since the SXC/Catalyst deal closed despite a better-than-expected operational outlook and positive commentary around synergy
opportunities and M&A prospects.
"While valuation has been a source of concern, we note that P/E on 2013E has already fallen 18% from pre-deal levels," the analyst comments. "In fact, the spread between CTRX and ESRX is now just six multiples points on our 2015 estimates for each company and we think CTRX’s likely higher outer year growth (we model 19% post 2015 CAGR versus ESRX’s 14% which does not include additional M&A) provides enough support."
For an analyst ratings summary and ratings history on Catamaran click here. For more ratings news on Catamaran click here.
Shares of Catamaran closed at $91.95 yesterday, with a 52 week range of $83.34-$95.18.
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