Leerink Swann Maintains an 'Outperform' on Express Scripts (ESRX); Merger Timing, Script Trends, Walgreen and Valuation

Leerink Swann maintains an 'Outperform' on Express Scripts (NASDAQ: ESRX) price target range of $70-$74.

Leerink analyst says, "We are updating our model to reflect expectations of fewer share repurchases, slower claims growth, slightly higher interest expense and slightly better gross margin in 2H:11 and 2012. While we reduce our 2011E and 2012E EPS by $0.05 each, we believe earnings are somewhat irrelevant to investors' current focus. The shares are trading at near-historic lows on a NTM P/E basis given investor concerns over (1) the FTC and (2) Walgreen (NYSE: WAG). We are buyers given the low forward P/E multiple and ~20%+ annual EPS growth in 2011E and 2012E."

For more ratings news on Express Scripts click here and for the rating history of Express Scripts click here.

Shares of Express Scripts closed at $46.44 yesterday.

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