UPDATE: Barrington Research Starts PharMerica (PMC) at Outperform

(Updated - November 20, 2014 10:18 AM EST)

Barrington Research initiated coverage on PharMerica (NYSE: PMC) with an Outperform rating and a price target of $30.00.

Analyst Michael Petusky said, "PharMerica is well-positioned to benefit from several macro-related tailwinds. These factors include: the aging of the U.S. population, the increased prevalence of chronic conditions, high utilization of pharmaceuticals by seniors, and strong growth within the home infusion and oncology pharmacy spaces."

"We arrive at our price target of $30 by attaching a 9x multiple to our 2015 EV/EBITDA estimate and an 8.5x multiple to our 2016 EV/EBITDA expectation. PMC shares are currently trading at about 8.5x our 2014 estimates," he added.

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 $22.59 yesterday.

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