Jefferies Reiterates a 'Buy' on Express Scripts (ESRX); FTC Review Extension Was Expected; Closing Target Specificity A Bullish Sign
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Price: $92.33 --0%
Rating Summary:
6 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies reiterates a 'Buy' on Express Scripts (NASDAQ: ESRX) price target of $60.00.
Analyst, Arthur I. Henderson, said, "While many investors anticipated that the FTC would extend its review of the pending ESRX-MHS merger, ESRX's decision to accelerate its targeted closing date to the "earlier part of the second quarter of 2012" (from the "first half of 2012") is notable and suggests that this management team has high conviction the Medco (NYSE: MHS) merger will close sooner than expected and on acceptable terms."
"ESRX is cheap standalone and very cheap if MHS merger closes. At current levels, ESRX is trading at 15x 2012 EPS (vs. stand-alone EPS growth of ~20%). While we continue to believe that the stock is attractively valued on a standalone basis and that it should have a fair value in excess of $60 per share, an approval of the MHS acquisition -- which is expected to contribute at least $1 billion in incremental EBITDA -- should enable the company to generate EPS of at least $5.00 to $5.25 in FY14."
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 $53.43 yesterday.
Analyst, Arthur I. Henderson, said, "While many investors anticipated that the FTC would extend its review of the pending ESRX-MHS merger, ESRX's decision to accelerate its targeted closing date to the "earlier part of the second quarter of 2012" (from the "first half of 2012") is notable and suggests that this management team has high conviction the Medco (NYSE: MHS) merger will close sooner than expected and on acceptable terms."
"ESRX is cheap standalone and very cheap if MHS merger closes. At current levels, ESRX is trading at 15x 2012 EPS (vs. stand-alone EPS growth of ~20%). While we continue to believe that the stock is attractively valued on a standalone basis and that it should have a fair value in excess of $60 per share, an approval of the MHS acquisition -- which is expected to contribute at least $1 billion in incremental EBITDA -- should enable the company to generate EPS of at least $5.00 to $5.25 in FY14."
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 $53.43 yesterday.
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