UPDATE: Cantor Fitzgerald Initiates Catamaran at Buy on Growth Outlook

Cantor Fitzgerald initiated coverage on Catamaran

with a Buy rating and a $56 price target. Cantor Fitzgerald noted, "The favourable market drivers for the industry include: 1) increased drug utilization; 2) aging population; 3) growth of chronic diseases; and 4) drug price inflation. Catamaran is poised to benefit from the disruption associated with the Express Scripts merger with Medco Health. Major margin drivers for the PBMs are: the increase usage of generic prescription drugs; increased spending on specialty drugs; increased mail and gross margin leverage with scale." Catamaran closed at $48.56 on Tuesday.