UPDATE: Citigroup Upgrades Express Scripts to Buy on Valuation

Citigroup raised its rating on Express Scripts

from Neutral to Buy and reiterated its $62 price target. Citigroup commented, "We are upgrading Express Scripts to Buy as the recent sell-off offers a compelling opportunity on a valuation basis. ESRX shares in the last month have sold off 21% versus -4% for the S&P 500 and -2% for its largest PBM competitors CVS Caremark and Catamaran. We are adjusting our estimates that are now above consensus for 2013 and our $62 target price. With the shares trading at less than 12x our 2013 EPS estimate and near a decade-low valuation multiple, ESRX now offers a compelling 24% return to our target price." Express Scripts closed at $50.05 on Wednesday.