UPDATE: Credit Suisse Upgrades SXC Health Solutions to Outperform Post CHSI Acquisition
Credit Suisse raises its rating on SXC Health Solutions (NASDAQ: SXCI) from Neutral to Outperform and increases its price target from $98 to $109.
Credit Suisse notes, "Shares of SXCI have continued to significantly outperform following the announcement of the CHSI acquisition as investors assume significant accretion from the deal as well as overall improved competitive positioning for SXCI post the integration of the deal. With shareholder votes scheduled on 7/2, we believe the company could be in a position to close the deal in early July (slightly earlier than expected). Based on the proposed $125M of synergies (which we view as overly conservative), we estimate the acquisition will add accretion north of $1.30 as early as 2014, which pushes our pro-forma F14 estimate to $4.50."
SXCI closed at $93.28 on Thursday.
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