UPDATE: Goldman Sachs Raises Healthcare PT's

According to a research report published earlier today, Goldman Sachs has increased SXC Health Solutions'

PT from $86 to $91, and upped Catalyst Health Solutions'

PT from $66 to $71. In the report, Goldman Sachs said, "With the Express-Medco merger closed, we expect consolidation to continue as top PBMs vie to close the market share gap. Under this backdrop, we see SXCI and CHSI as potential M&A candidates given their (1) relative smaller scale, each with c.5% share, (2) complementary client mix, and (3) synergy opportunities from lagging profitability metrics. It is also not unreasonable to consider a scenario where the mid-market players come together in order to move up the market share ladder." SXCI (Buy) closed yesterday at $78.45. CHSI (Neutral) closed yesterday at $61.20.