In a report published Thursday, Deutsche Bank analyst George Hill initiated coverage on Catamaran Corp. CTRX with a Hold rating and $51.00 price target.
In the report, Deutsche Bank noted, “We are initiating on CTRX shares with a Hold rating, with a cautious outlook. Despite being very impressed with the company's management team and their track record of execution, we fear the company has reached the point in its corporate life cycle where its shares' steep premium to the group multiple will be more difficult to maintain. As revenue and earnings growth slows as a result of the company's now larger size, we expect multiple compression to mute the earnings growth that has driven the shares' appreciation.”
Catamaran closed on Wednesday at $46.40.
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