Barclays Maintains a 'Equalweight' on Omnicare (OCR); Thoughts on the Analyst Day - 'A Big Boy Company'
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Price: $97.90 --0%
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains a 'Equalweight' on Omnicare (NYSE: OCR) price target of $34.00.
Barclays analyst said, "Barclays Capital Key Takeaways: 1) Omnicare intends to provide guidance for cash earnings per share in 2012, and it appears that EPS will be boosted by around $0.70 by moving to this reporting metric. Given that the sources of the higher cash EPS are sustainable, we believe the company will likely get credit for this change. 2) Omnicare confirmed that the three big brand to generic conversions (Zyprexa, Seroquel and Lexapro) represent $1 billion in sales today, so around 20% of the company's long-term care pharmacy sales are moving generic between 4Q11 and 1Q12. It is no surprise that Omnicare should benefit from a major brand to-generic conversion cycle in 2012; however, the size of these figures helps confirm the opportunity. 3) Omnicare continues to have conviction to grow EPS by a double-digit CAGR between 2010 and 2013, suggesting EPS of at least $2.78 in 2013, ahead of the consensus estimate of $2.64. 4) The company was unable to provide ny commentary on Pharmerica. 5) Omnicare remains confident in their ability to grow organically in 2012. 6) The Specialty business represents 19% of revenu e and has grown revenue and EBITDA by 24% and 10%, respectively, during the first ninemonths of 2011; Omnicare noted it would consider all options around the Specialty business to create shareholder value. 7) Omnicare is deploying some differentiated technology that should be a source of both customer retention and cost savings over the next few years."
For an analyst ratings summary and ratings history on Omnicare click here. For more ratings news on Omnicare click here.
Shares of Omnicare closed at $33.41 yesterday.
Barclays analyst said, "Barclays Capital Key Takeaways: 1) Omnicare intends to provide guidance for cash earnings per share in 2012, and it appears that EPS will be boosted by around $0.70 by moving to this reporting metric. Given that the sources of the higher cash EPS are sustainable, we believe the company will likely get credit for this change. 2) Omnicare confirmed that the three big brand to generic conversions (Zyprexa, Seroquel and Lexapro) represent $1 billion in sales today, so around 20% of the company's long-term care pharmacy sales are moving generic between 4Q11 and 1Q12. It is no surprise that Omnicare should benefit from a major brand to-generic conversion cycle in 2012; however, the size of these figures helps confirm the opportunity. 3) Omnicare continues to have conviction to grow EPS by a double-digit CAGR between 2010 and 2013, suggesting EPS of at least $2.78 in 2013, ahead of the consensus estimate of $2.64. 4) The company was unable to provide ny commentary on Pharmerica. 5) Omnicare remains confident in their ability to grow organically in 2012. 6) The Specialty business represents 19% of revenu e and has grown revenue and EBITDA by 24% and 10%, respectively, during the first ninemonths of 2011; Omnicare noted it would consider all options around the Specialty business to create shareholder value. 7) Omnicare is deploying some differentiated technology that should be a source of both customer retention and cost savings over the next few years."
For an analyst ratings summary and ratings history on Omnicare click here. For more ratings news on Omnicare click here.
Shares of Omnicare closed at $33.41 yesterday.
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