S&P Capital IQ Reiterates its STRONG BUY Rating on Express Scripts, Target Price Raised

October 28 00:00 2011

NEW YORK, October 28 (RainbowNewsLine.com) – Analyst Herman Saftlas of S&P Capital IQ reiterates his STRONG BUY rating on the shares of Express Scripts (NASDAQ: ESRX). The target price has been raised from $48 to $52.

Analyst Herman Saftlas, in a research note published yesterday mentions that the company reported its Q3 EPS short of the estimates.  Express Scripts’ revenues grew 2.8% backed by strength in Canada, and margins improved with EBITDA per adjusted claim growing 13% to $3.72. The company showed confidence with expected client retention rate of 97%, and if the disputed contract isn’t resolved 95% of ESRX’s clients are willing to move ahead without Walgreen, the analyst says. The EPS estimate for 2011 has been raised from $3.00 to $3.03, given the acquisition of Medco to be completed by H1’12.