Morgan Stanley analyst Ricky Goldwasser downgraded Express Scripts Holding Company (NASDAQ: ESRX) from Equal-weight to Underweight on Monday. Despite the downgrade to the equivalent of a sell rating, the analyst boosted his price target on the stock from $67 to $70.
Goldwasser is concerned with the possibility Express Scripts is at a long-term disadvantage given its lack of an integrated offering. "[W]e are concerned with LT negative impact to earnings by looming loss (or reprice) of Anthem Inc (NYSE: ANTM) and PBM market dynamics," the analyst said.
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27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
While Goldwasser noted the discovery scheduled related to the Anthem suit clarified a near-term issue with Express Scripts earnings power, he pointed to competitive pressure which is "rising and Express’ standalone model appears increasingly disadvantaged."
Investors in Express Scripts have seemingly shrugged at the Morgan Stanley downgrade Monday; the stock last traded at $74.51, down just 0.09 percent from Friday's closing price.