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Catamaran Corp (NASDAQ: CTRX) was upgraded by equities researchers at ISI Group from a “buy” rating to a “strong-buy” rating in a research report issued on Monday, StockRatingsNetwork.com reports. The firm currently has a $62.00 price objective on the stock, down from their previous price objective of $68.00. ISI Group’s price objective would suggest a potential upside of 25.91% from the stock’s previous close.
The analysts wrote, “We are upgrading CTRX from Buy to Strong Buy following the recent pullback as we view the fears about NT growth rates as overdone. Shares of CTRX have retraced to pre-Cigna decision levels as investor concerns over the pace of accretion as well as potential distractions in the selling season have taken some momentum out of the stock. This is despite the single best possible outcome (in our view) for the Cigna relationship – a long-term agreement at a GM in the range of a typical health plan with no capital commitment upfront. We expect the company to be net share winners in this selling season as well as to carry the momentum of the Cigna agreement into the 2015 selling season (given that the PBM market tends to be highly momentum-driven). We have reduced our PT to $62.00, representing ~25x our FY14 EPS estimates, as we think the lack of visibility on the pace of new business wins could slow the multiple expansion opportunity. However, if CTRX is able to maintain the pace of new business wins that it had last year, we would argue for potential multiple expansion or the ability to carry forward the 25x multiple for out-year earnings.”
Catamaran Corp (NASDAQ: CTRX) opened at 49.24 on Monday. Catamaran Corp has a 1-year low of $41.67 and a 1-year high of $58.18. The stock’s 50-day moving average is currently $49.61. The company has a market cap of $10.139 billion and a price-to-earnings ratio of 64.96.
Catamaran Corp (NASDAQ: CTRX) last posted its quarterly earnings results on Thursday, May 2nd. The company reported $0.42 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.41 by $0.01. The company had revenue of $3.18 billion for the quarter, compared to the consensus estimate of $3.53 billion. The company’s quarterly revenue was up 87.5% on a year-over-year basis. Catamaran Corp has set its FY13 guidance at $1.81-1.88 EPS. On average, analysts predict that Catamaran Corp will post $1.85 earnings per share for the current fiscal year.
A number of other firms have also recently commented on CTRX. Analysts at Credit Suisse reiterated an “outperform” rating on shares of Catamaran Corp in a research note to investors on Tuesday, June 11th. They now have a $64.00 price target on the stock, up previously from $61.00. Separately, analysts at Jefferies Group reiterated a “buy” rating on shares of Catamaran Corp in a research note to investors on Tuesday, June 11th. They now have a $65.00 price target on the stock. Finally, analysts at Raymond James upgraded shares of Catamaran Corp from a “market perform” rating to an “outperform” rating in a research note to investors on Tuesday, June 11th. They now have a $62.00 price target on the stock.
One equities research analyst has rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. Catamaran Corp has an average rating of “Buy” and an average target price of $69.82.
Catamaran Corporation (NASDAQ: CTRX), formerly SXC Health Solutions Corp.Image may be NSFW.
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