UBS Maintains a 'Buy' on Medco Health Solutions (MHS); Read-through From UNH; Raise ‘13 EPS

UBS maintains a 'Buy' on Medco Health Solutions (NYSE: MHS) price target raised from $66 to $70.

UBS analyst said, "United Health (NYSE: UNH) to Transition PBM Members From MHS on ‘STAGED’ Basis: In relation to the expected transition of UNH PBM business away from MHS, we have previously modeled a full transition of the ~12 mil lives on 1/1/13 (per previous discussions w/ MHS mgmt). However, based on disclosures in UNH’s earnings release today, UNH has now suggested a ‘STAGED’ transition of the ~12 million members from MHS throughout 2013. This leads us to raise our 2013 EPS estimate for MHS from $4.70 to $4.75 to reflect some UNH membership remaining on MHS’ books in 1H13. We are still slightly below Street’s $4.78."

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

Shares of Medco Health Solutions closed at $62.00 yesterday.

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