Caremark Rx "overweight," target price raised

02/17/06 - Prudential Financial

NEW YORK, February 17 (newratings.com) - Analyst David H Shove of Prudential Financial maintains his "overweight" rating on Caremark Rx (CMX). The target price has been raised from $72 to $75.

In a research note published yesterday, the analyst mentions that the company has posted its 4Q05 operating EPS in-line with the consensus and marginally short of the estimates. Caremark Rx has issued a conservative earnings guidance for 2006, which includes the impact of the loss of retail contracts, as well as the effect of leverage from future stock buyback activity, the Medicare Part D programme, new acquisitions and increased generic and mail order penetration rates, the analyst adds.