UPDATE: ISI Group Downgrades Catamaran to Buy Following Mixed Q1 Performance

In a report published Friday, ISI Group analyst Michael Cherny downgraded the rating on Catamaran Corp.

from Strong Buy to Buy, and slightly lowered the price target from $60.00 to $59.50. In the report, Cherny noted, “We continue to view CTRX as a key share gainer in the PBM market given its flexible business model and low-costsolution, and we expect management's bullish commentary on significant RFP flow to translate into a strong 2014 selling season. However, given the risk/reward ahead of the upcoming HealthSpring contract decision (we continue to believe they renew / expand, although we recognize visibility on timing is limited) and more muted NT core growth, we see modestly less upside potential relative to our fair value on a NT basis. However, we note the optionality related to the potential retention and/or expansion of the HealthSpring contract, which would support the potential for multiple expansion.” Catamaran Corp. closed on Thursday at $52.98.