UPDATE: Deutsche Bank Initiates Coverage on CVS Caremark on Industry Overhang Concerns

In a report published Thursday, Deutsche Bank analyst George Hill initiated coverage on

with a Hold rating and $71.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage of CVS Caremark (CVS) with a Hold rating. CVS is a combination of one of the largest retail pharmacies and one of the largest PBMs in the United States. At the current share price, we fear industry overhangs related to the PBM could begin to weigh more heavily on the company's multiple, and at its current size, it is difficult to envision a catalyst that moves the needle to drive faster earnings growth or multiple expansion. Even a global generics purchasing deal, by our math, barely moves the needle for CVS.” CVS Caremark closed on Wednesday at $65.42.