FBR Capital Maintains an 'Outperform' on Medco Health (MHS); Removes as Top Pick
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Price: $70.30 --0%
Rating Summary:
5 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Medco Health Solutions (NYSE: MHS), lowers PT from $75 to $71.
FBR analyst says, "Despite the recent announcement of Medco losing $3B of annual revenue from the Federal Employees Program (FEP) contract going to competitor CVS Caremark (NYSE: CVS), we maintain our rating on MHS; but we are lowering our price target by to $71.00. Our price target represents 15x our 2012 EPS estimate of $4.72. In addition, we are removing our Top Pick designation for MHS shares, as the recent news does affect growth prospects for 2012. Even if Medco's management decided to get more aggressive on its pricing strategy for the current selling season, we would be concerned that such a dynamic could help create a more aggressive pricing environment. We would view such an environment as a "lose-lose" scenario for all the major PBM players in the long run."
For more ratings news on Medco Health Solutions click here and for the rating history of Medco Health Solutions click here.
Shares of Medco Health Solutions closed at $58.66 yesterday.
FBR analyst says, "Despite the recent announcement of Medco losing $3B of annual revenue from the Federal Employees Program (FEP) contract going to competitor CVS Caremark (NYSE: CVS), we maintain our rating on MHS; but we are lowering our price target by to $71.00. Our price target represents 15x our 2012 EPS estimate of $4.72. In addition, we are removing our Top Pick designation for MHS shares, as the recent news does affect growth prospects for 2012. Even if Medco's management decided to get more aggressive on its pricing strategy for the current selling season, we would be concerned that such a dynamic could help create a more aggressive pricing environment. We would view such an environment as a "lose-lose" scenario for all the major PBM players in the long run."
For more ratings news on Medco Health Solutions click here and for the rating history of Medco Health Solutions click here.
Shares of Medco Health Solutions closed at $58.66 yesterday.
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