Dougherty Raises Price Target on BioScrip (BIOS) Following Deal with Walgreen (WAG)
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Price: $10.80 --0%
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 8 | New: 15
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 8 | New: 15
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Dougherty & Co. is reaffirming its Buy rating on shares of BioScrip (NASDAQ: BIOS) and is raising its price target from $8 to $10.
The company announced it entered a definitive agreement to sell certain assets of its community specialty pharmacies and centralized specialty and mail service pharmacy businesses to Walgreen Co. (NSYE: WAG), for approximately $225 million.
BIOS looks to use the proceeds to expand its infusion pharmacy footprint to better serve its national customers, execute on strategic growth opportunities and pay down debt, reports Dougherty.
"We generally do not adjust our model for pending transactions until they close, and while we certainly expect this deal to close, we think following that approach in this case makes a lot of sense. As one might expect, there remains much we do not know yet about this transaction and how key elements of it and related actions by BIOS management will affect the company’s performance in 2012 and beyond," an analyst at Dougherty comments. "On the other hand, we can say with certainty we believe this is a sound strategic move, it is consistent with our thinking regarding steps management can take to drive value at BIOS and we believe the stock move yesterday was reasonable."
The firm forecasts EPS of $0.25 and $0.39 for FY11 and FY12.
For an analyst ratings summary and ratings history on BioScrip click here. For more ratings news on BioScrip click here.
Shares of BioScrip closed at $6.72 yesterday.
The company announced it entered a definitive agreement to sell certain assets of its community specialty pharmacies and centralized specialty and mail service pharmacy businesses to Walgreen Co. (NSYE: WAG), for approximately $225 million.
BIOS looks to use the proceeds to expand its infusion pharmacy footprint to better serve its national customers, execute on strategic growth opportunities and pay down debt, reports Dougherty.
"We generally do not adjust our model for pending transactions until they close, and while we certainly expect this deal to close, we think following that approach in this case makes a lot of sense. As one might expect, there remains much we do not know yet about this transaction and how key elements of it and related actions by BIOS management will affect the company’s performance in 2012 and beyond," an analyst at Dougherty comments. "On the other hand, we can say with certainty we believe this is a sound strategic move, it is consistent with our thinking regarding steps management can take to drive value at BIOS and we believe the stock move yesterday was reasonable."
The firm forecasts EPS of $0.25 and $0.39 for FY11 and FY12.
For an analyst ratings summary and ratings history on BioScrip click here. For more ratings news on BioScrip click here.
Shares of BioScrip closed at $6.72 yesterday.
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