Goldman Sachs Downgrades Express Scripts (ESRX) to Neutral

Goldman Sachs downgraded Express Scripts (NASDAQ: ESRX) from Buy to Neutral with a price target of $75.00 (unchanged). Analyst Robert P. Jones made note of fading growth drivers in its core business.

"We downgrade ESRX to Neutral from Buy as we think current valuation adequately reflects a business supported by maturing growth drivers. While ESRX will continue to play a critical role in reducing client drug spend, we do not see generics, mail, and formulary tools driving historic organic growth rates. Further, with ~30% of the PBM/Specialty markets, scale/synergy-driven M&A growth is less obvious, in our view. While aspects of the story remain attractive (specialty growth, buybacks), the stock trades above its 3-year averages and seems more reflective of its growth profile," he said.

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 $75.05 yesterday.

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