MedcoHealth Solutions (MHS) Announces $3 Billion Buyback

Deutsche Bank Securities analysts Ross Muken, Michael Cherny and Vijay Kumar reiterated their Buy rating for shares of MedcoHealth Solutions Inc

, with a price target of $78 per share. The analysts reiterated their Buy rating for MedcoHealth Solutions Inc after the company's board of directors approved a $3 billion share repurchase program. The repurchase program will follow an earlier one that has another $292 million of buybacks remaining before it ends. MedcoHealth Solutions Inc has bought back over 208 million shares since its first repurchase program began in in 2005. The Deutsche Bank Securities analysts wrote, "we view this as an incremental positive given the company's longstanding history of successful (and accretive) share repurchases and significant cash flow. Medco has consistently utilized share repurchases as a way to deploy capital back to shareholders, so it is not entirely surprising that the company authorized a new program (although the size of the transaction is encouraging). Given recent underperformance in the stock, we would expect the company to be active on the buyback on a near-term basis, which will have a strong follow-through throughout the year. Given the company's clinical differentiation and strong core PBM growth, we reiterate our Buy rating and $78 PT."