Jefferies Cuts Price Target on Express Scripts (ESRX), No More Buyback and Weak Volumes
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Price: $92.33 --0%
Rating Summary:
6 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 12
Rating Summary:
6 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 12
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Jefferies is reiterating its Buy rating on shares of Express Scripts (NASDAQ: ESRX) and is reducing its price target from $69 to $55.
The firm is lowering its 2011 and 2012 earnings per share estimates from $3.20 and $3.85 to $3.09 and $3.80 due to the elimination of buybacks in the second half of 2011 and ongoing weakness in volumes.
Jefferies comments that, yesterday, The House Judiciary Subcommittee on Intellectual Property, Competition and the Internet held a hearing to discuss the merger between Express Scripts and Medco. Both ESRX CEO George Paz and MHS CEO David Snow favor the acquisition and seemed to be winning the discussion. "Mr. Paz and Mr. Snow were the winners yesterday; they provided strong arguments to show how the merger will aid struggling Americans and why there will be adequate competitive dynamics post-merger, reported an analyst at Jefferies.
The firm is lowering its 2011 and 2012 EPS estimates from $3.20 and $3.85 to $3.09 and $3.80. Revenue for the two years is forecasted to be $45.5 billion and $46.3 billion.
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 $41.53 yesterday.
The firm is lowering its 2011 and 2012 earnings per share estimates from $3.20 and $3.85 to $3.09 and $3.80 due to the elimination of buybacks in the second half of 2011 and ongoing weakness in volumes.
Jefferies comments that, yesterday, The House Judiciary Subcommittee on Intellectual Property, Competition and the Internet held a hearing to discuss the merger between Express Scripts and Medco. Both ESRX CEO George Paz and MHS CEO David Snow favor the acquisition and seemed to be winning the discussion. "Mr. Paz and Mr. Snow were the winners yesterday; they provided strong arguments to show how the merger will aid struggling Americans and why there will be adequate competitive dynamics post-merger, reported an analyst at Jefferies.
The firm is lowering its 2011 and 2012 EPS estimates from $3.20 and $3.85 to $3.09 and $3.80. Revenue for the two years is forecasted to be $45.5 billion and $46.3 billion.
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 $41.53 yesterday.
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