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UPDATE: ISI Group Downgrades Catamaran to Buy Following Mixed Q1 Performance

UPDATE: Morgan Stanley Reiterates Equal-Weight Rating on Catamaran Corp Following Salveo Acquisition
Catamaran To acquire Salveo Specialty Pharmacy For $260M In Cash

In a report published Friday, ISI Group analyst Michael Cherny downgraded the rating on Catamaran Corp. (NASDAQ: CTRX) from Strong Buy to Buy, and slightly lowered the price target from $60.00 to $59.50.

In the report, Cherny noted, “We continue to view CTRX as a key share gainer in the PBM market given its flexible business model and low-costsolution, and we expect management's bullish commentary on significant RFP flow to translate into a strong 2014 selling season. However, given the risk/reward ahead of the upcoming HealthSpring contract decision (we continue to believe they renew / expand, although we recognize visibility on timing is limited) and more muted NT core growth, we see modestly less upside potential relative to our fair value on a NT basis. However, we note the optionality related to the potential retention and/or expansion of the HealthSpring contract, which would support the potential for multiple expansion.”

Catamaran Corp. closed on Thursday at $52.98.

Latest Ratings for CTRX

Feb 2015Deutsche BankMaintainsHold
Feb 2015Leerink SwannMaintainsOutperform
Feb 2015BarclaysMaintainsEqualweight

View More Analyst Ratings for CTRX
View the Latest Analyst Ratings

Posted-In: ISI GroupAnalyst Color Downgrades Analyst Ratings


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