UPDATE: Cantor Fitzgerald Initiates Catamaran at Buy on Growth Outlook

Cantor Fitzgerald initiated coverage on Catamaran (NASDAQ: CTRX) with a Buy rating and a $56 price target.

Cantor Fitzgerald noted, "The favourable market drivers for the industry include: 1) increased drug utilization; 2) aging population; 3) growth of chronic diseases; and 4) drug price inflation. Catamaran is poised to benefit from the disruption associated with the Express Scripts merger with Medco Health. Major margin drivers for the PBMs are: the increase usage of generic prescription drugs; increased spending on specialty drugs; increased mail and gross margin leverage with scale."

Catamaran closed at $48.56 on Tuesday.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.