Oppenheimer Maintains Outperform Rating, $63 PT for Express Scripts

In a company update published earlier today, Oppenheimer Holdings maintained its Outperform rating and $63.00 price target for Express Scripts, Inc. ESRX. Oppenheimer went on to say “Express Scripts reported strong volumes but missed on EPS, as higher SG&A expenditures impacted earnings. The strength in claims growth was slightly higher than our model/consensus, with new business wins accounting for most of the beat. The claims number should help alleviate investor concern surrounding the ongoing dispute with Walgreens (WAG, $34.05, NR). Another bright spot for ESRX is that Medco seems to be trending higher on revenues than its initial 2012 guidance. ESRX provided combined 2012 EPS guidance of $3.36-3.66 (vs. our $3.68 estimate). Adjusting for the higher than expected share count and tax rate, our previous estimate would have fallen right at the midpoint of management's guidance. The wide EPS range reflects cushion around the integration.” Express Scripts, Inc. closed yesterday at $54.34.