JP Morgan Maintains Overweight on Omnicare After CEO Resignation
JP Morgan has published a research report on Omincare (NYSE: OCR) commenting on today's announced management change.
In the report, JP Morgan writes, "This morning, Omnicare announced that the Board accepted John Figueroa's resignation as CEO and director. On the conference call, the company pointed to personal reasons as the driver behind Mr. Figueroa's decision to resign. While we were surprised by today's announcement, we view today's weakness as a buying opportunity. Importantly, the company indicated that the previously issued FY12 guidance remains unaffected. Further, we note that John Workman and Nitin Sahney, both of whom have been instrumental in crafting and executing the ongoing turnaround and strategy, are taking on larger roles within the company, which we view positively. As we've noted in the past, we believe the company remains well positioned to capitalize on strong industry fundamentals and realize incremental benefits from the turnaround."
JP Morgan maintains its Overweight rating on Omnicare, which is currently trading down $2.48 from Friday's $33.36 closing price.
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