Barclays Maintains an 'Overweight' on Catalyst Health Solutions (CHSI); What We Are Expecting
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Price: $92.00 --0%
Rating Summary:
3 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Catalyst Health Solutions (NASDAQ: CHSI), PT lowered by $1 to $71.
Barclays analyst says, "Ahead of Catalyst's July 7 investor call where it will provide updated 2011 financial guidance with its now completed Walgreens Health Initiative acquisition, we provide our expectations and updated thoughts. We are estimating incremental revenue of close to $600mm of drug spend (with COGS gross up), pushing revenue growth from current "up 25-30%" range ($4.6-$4.8 billion) to $5.2 billion to $5.4 billion (up roughly 40-45%). We're also assuming the company will confirm its $2.20-$2.39 adjusted EPS range, excluding transaction and merger expenses, though we believe it could suggest that WHI may be slightly accretive to full year results (off mid-point of $2.30 in our view). We believe the company could be in a position to announce its new CFO by the call, though we do expect participation by outgoing CFO Hai Tran and the presence of interim CFO Deirdre Kramer." (Barclays lowers FY11 EPS estimates from $2.36 to $2.34 and FY12 from $3.00 to $2.98)
For more ratings news on Catalyst Health Solutions click here and for the rating history of Catalyst Health Solutions click here.
Shares of Catalyst Health Solutions closed at $55.89 yesterday.
Barclays analyst says, "Ahead of Catalyst's July 7 investor call where it will provide updated 2011 financial guidance with its now completed Walgreens Health Initiative acquisition, we provide our expectations and updated thoughts. We are estimating incremental revenue of close to $600mm of drug spend (with COGS gross up), pushing revenue growth from current "up 25-30%" range ($4.6-$4.8 billion) to $5.2 billion to $5.4 billion (up roughly 40-45%). We're also assuming the company will confirm its $2.20-$2.39 adjusted EPS range, excluding transaction and merger expenses, though we believe it could suggest that WHI may be slightly accretive to full year results (off mid-point of $2.30 in our view). We believe the company could be in a position to announce its new CFO by the call, though we do expect participation by outgoing CFO Hai Tran and the presence of interim CFO Deirdre Kramer." (Barclays lowers FY11 EPS estimates from $2.36 to $2.34 and FY12 from $3.00 to $2.98)
For more ratings news on Catalyst Health Solutions click here and for the rating history of Catalyst Health Solutions click here.
Shares of Catalyst Health Solutions closed at $55.89 yesterday.
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