S&P Maintains STRONG BUY Rating on Express Scripts, Target Price Reduced

October 07 00:00 2011

NEW YORK, October 7 (RainbowNewsLine.com) – Analyst Herman Saftlas of S&P Equity Research maintains his STRONG BUY rating on the shares of Express Scripts (NASDAQ: ESRX), while reducing their estimates for the company. The target price has been reduced from $65 to $48.

Analyst Herman Saftlas, in a research note published yesterday, mentions that ESRX reduces their EPS guidance for 2011 by 6% to $2.95 from $3.05 after considering the economy related weakness in script’s volume along with higher costs. In a conference, ESRX signified such trends and lowered their EBITDA for ’11.  The new forecast of $3.55-$3.70 shows 11-16% growth from ’10. The analyst has reasons to believe that ESRX will successfully acquire Medco (MHS 48, HOLD). The EPS estimate for 2011 has been reduced from $3.25 to $3.00.

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