Jefferies Raises Price Target on SXC Health Solutions (SXCI), Looks to Top Long & Short Term Outlook

Jefferies is maintaining its Buy rating on shares of SXC Health Solutions (NASDAQ: SXCI), but is increasing its price target from $60 to $68 following a meeting with the company's Sr. Director of Investor Relations Tony Perkins in Chicago yesterday.

Mr. Perkins predicts SXCI will keep its HealthSpring contract at least through 2015 and highlighted that the CY13 selling season is off to an early start.

The firm remains bullish on shares of SXCI as they continue to believe the company will beat near and long term growth expectations. Jefferies notes the company continues to gain market share while management continues to make a number of strategic acquisitions.

An analyst at Jefferies comments, "Given low-hanging synergy opportunities in bringing mail, specialty, and rebate mgmt in-house, as well as SXC's integration track record, we expect immediate earnings contribution from HealthTrans once the deal closes in 1Q12 and have no doubt in SXC's ability to realize ~$35 million in EBITDA from the deal in FY13. Since FY12/FY13 consensus does not reflect any contribution from this deal, expect Street consensus to rise post-close."

Jefferies is reaffirming its FY11 and FY12 EPS estimates of $1.62 and $2.19, while increasing its FY13 estimate from $2.55 to $2.70.

For an analyst ratings summary and ratings history on SXC Health Solutions click here. For more ratings news on SXC Health Solutions click here.

Shares of SXC Health Solutions closed at $56.50 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Jefferies Downgrades Sunway Healthcare Holdings (SUNMED:MK) to Hold
• Flowers Foods (FLO) Misses Q2 EPS by 3c; Offers Guidance
• Largo restructures $82.2M in debt, extending maturity to 2030