UBS Maintains a 'Buy' on Express Scripts (ESRX); Raising Estimates for Medco Merger
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Price: $92.33 --0%
Rating Summary:
6 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on Express Scripts (NASDAQ: ESRX) price target raised from $53 to $66 to reflect merger accretion.
UBS analyst says, "In light of our industry report today that highlights the fact that PBMs are best-positioned to leverage generic pipeline in both 2012 and 2013, we are fine-tuning our ESRX standalone model, and now we also including the Medco financials into our published ESRX model for the first time. The punchline is that we are raising our 2012 EPS estimate from $3.60 to $3.70, and raising 2013 from $4.25 to $4.70 reflect our belief that the MHS merger is on track to close midyear."
"2012 Should Shape Up Nicely for ESRX Despite Walgreen (NYSE: WAG) Dispute: Recent discussion with mgmt reinforces our view that ESRX has retained 95%+ of its 2011 prescription volume into 2012. Thus, we remain comfortable with our $3.60 standalone estimate for ESRX, and have now baked in $0.10 accretion for Medco in 2H12."
For an analyst ratings summary and ratings history on Express Scripts click here. For more ratings news on Express Scripts click here.
Shares of Express Scripts closed at $48.87 yesterday.
UBS analyst says, "In light of our industry report today that highlights the fact that PBMs are best-positioned to leverage generic pipeline in both 2012 and 2013, we are fine-tuning our ESRX standalone model, and now we also including the Medco financials into our published ESRX model for the first time. The punchline is that we are raising our 2012 EPS estimate from $3.60 to $3.70, and raising 2013 from $4.25 to $4.70 reflect our belief that the MHS merger is on track to close midyear."
"2012 Should Shape Up Nicely for ESRX Despite Walgreen (NYSE: WAG) Dispute: Recent discussion with mgmt reinforces our view that ESRX has retained 95%+ of its 2011 prescription volume into 2012. Thus, we remain comfortable with our $3.60 standalone estimate for ESRX, and have now baked in $0.10 accretion for Medco in 2H12."
For an analyst ratings summary and ratings history on Express Scripts click here. For more ratings news on Express Scripts click here.
Shares of Express Scripts closed at $48.87 yesterday.
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