Goldman Sachs Reiterates Buy Rating, $60 PT on Catamaran Corp.
In a report published Wednesday, Goldman Sachs Group reiterated its Buy rating and $60.00 price target on Catamaran Corp. (NASDAQ: CTRX).
Goldman Sachs noted, “CTRX (CL-Buy) is scheduled to host its 2012 investor day in New York on Thursday, November 15 – its first since the SXC/Catalyst merger. The meeting should help solidify the strategic direction of the combined company with specific updates on: (1) the Catalyst integration and synergies, which both appear to be tracking ahead of schedule, (2) fundamentals and new business outlook, which appear solid for CTRX despite ESRX's 2013 commentary, (3) CTRX's increasing focus on Specialty after its rebranded ‘BriovaRx' launch, and (4) capital allocation plans with the roll-up story likely set to resume. Importantly, the CI/HS contract (18%/5% of sales/EPS) remains a heightened source of investor focus, but we do not expect a resolution at this time. While the absence of an announcement this week could leave some disappointed, we continue to believe the most likely eventual outcome is a continued relationship with CI.”
Catamaran Corp. closed on Tuesday at $49.57.
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Tags: Goldman Sachs Group