Morgan Stanley Sees Growing Pains for Catamaran Corp. as Company Matures

In a report published Friday, Morgan Stanley analyst Ricky R. Goldwasser reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “We view CY14 EBITDA guidance of $760-$810, as realistic, not conservative, and see SG&A spend as indicative of CTRX's maturation from rapid growth of the past ~5 years. Increased focus on service and related SG&A investments point to the need for increased differentiation as CTRX grows in size and competes for larger, more sophisticated clients (Fortune 500 and health plans). While we acknowledge the benefit from public exchanges and Medicaid expansion are not included in guidance and could present upside, we quantify the opportunity in year 1 as limited.” Catamaran Corp. closed on Thursday at $46.17.