Analyst action: Clarcor, CVS, SunTrust
Posted on November 20, 2009 at 10:42 amBB&T analyst Kevin Maczka on Thursday raised his rating on shares of Clarcor (Ticker: CLC) from ‘hold’ to ‘buy.’ His target price for the Franklin-based filtration and packaging company is $40, 27 percent above its Wednesday close.
Two stocks with a local presence have also received votes of confidence. At Credit Suisse, Craig Siegenthaler has lifted his target for SunTrust (Ticker: STI) to $23 from $21, while UBS analyst Neil Currie has started covering CVS Caremark (Ticker: CVS) with a ‘buy’ rating and a $34 target.
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Calming the Caremark waves
Posted on November 13, 2009 at 8:28 amCVS Caremark CEO Tom Ryan had some honest words about the state of and the outlook for his company’s pharmacy benefit management business, which is going through a bit of a rough patch.
“I take some ownership on this. We focused too much on the retail side. We were excited about the retail side; it’s why we did the deal, because we could offer something to the consumer. We forgot to talk about the PBM capabilities, that’s why clients sign us up, right?” Ryan said.
Analyst action: CVS Caremark, Synovus
Posted on November 11, 2009 at 10:43 amScott Mushkin at Jefferies has lowered his price target on shares of CVS Caremark (Ticker: CVS) to $39 from $42 after the company’s so-so earnings call last week. He still rates the stock a ‘buy.’
Over at Morgan Keegan, Robet Patten has cut his rating on Synovus Financial to ‘market perform’ from ‘outperform.’ Shares of Synovus (Ticker: SNV) have lost three-quarters of their value this year.
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Latest Senate health plan a winner for hospitals
Posted on October 6, 2009 at 1:40 pmThe nation’s hospital companies – a large number of whom call Middle Tennessee home – are set to come out ahead if the latest version of the Senate’s plan to reform health insurance becomes law. That’s in large part because a previous deal in which hospitals pledged to produce $155 billion in savings by 2019 still stands. In terms of sheer dollars, local players HCA and Community Health Systems would benefit most.
On the flip side, pharmacy benefit managers such as Caremark don’t have much to like from this new version: They’ll be required to disclose the incentives drug makers are paying them.
CVS Caremark is just so misunderstood
Posted on September 1, 2009 at 9:03 amA week after Barron’s stated the case for the shares of CVS Caremark (Ticker: CVS), Fortune weighs in on the topic. Even though the stock has beaten the S&P by 16 points this year, it trails its peers.
The market questions whether a drugstore chain, which has expertise in retail sales, can run a PBM, which negotiates on behalf of employers and insurance plans to purchase drugs from pharmaceutical companies. As a result, CVS’s price/earnings ratio for the next 12 months is 13, while Walgreen’s is 15 and Medco’s is 20. That makes CVS, which is poised for strong growth, a bargain - no matter how the health-reform battle plays out.
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Caremark powers CVS earnings lift
Posted on August 4, 2009 at 7:23 amAnother strong quarter from its pharmacy benefit management division — revenues were up 15 percent from a year ago — has led CVS Caremark to again raise its earnings guidance. Shares of the company (Ticker: CVS) are up more than 4 percent in pre-market trading.
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Group targeting CVS Caremark ‘optimistic’
Posted on May 13, 2009 at 5:16 pmA group of independent pharmacists says it is “cautiously optimistic” following a meeting with the Federal Trade Commission.
The National Community Pharmacists Association has for months been pressuring the commission to investigate CVS Caremark over claims that the company engages in anticompetitive practices. The group also seeks to reopen the 2007 merger that formed the joint company.
Further details here.
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Costs cut CVS Caremark earnings
Posted on May 5, 2009 at 11:03 amIntegration costs and other factors caused CVS Caremark Corp.’s first quarter earnings to fall slightly compared to last year.
The company’s earnings dipped to $743.5 million, down from $748.5 million in ‘08. Net Revenue, on the other hand, increased to $23.4 billion, up from $21.3 billion last year.
Earnings release available here.
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Caremark competitor bulks up
Posted on April 13, 2009 at 6:45 amExpress Scripts, which two years ago wanted to buy Nashville-based Caremark, has signed a $4.7 billion deal to buy the pharmacy benefits management division of insurer WellPoint. In terms of the number of prescriptions managed, the purchase will vault Express over Caremark into the No. 2 spot.
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A growth opportunity for Caremark
Posted on March 6, 2009 at 6:52 pmThe Financial Times says WellPoint is putting its pharmacy benefit management unit on the block. CVS Caremark, which runs its PBM business out of Nashville, is likely to be one of the main bidders.
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You mean that wasn’t our money?
Posted on at 1:39 pmCVS/Caremark has come under fire from the State of Maryland over alleged overpayments and undisclosed rebates.
CVS Caremark, the State of Maryland’s former pharmacy benefit manager (PBM), collected more than $10 million in potential overpayments and undisclosed rebates, among other deficiencies, according to the State Department of Legislative Services which recently audited the Department of Budget and Management Office of Personnel Services and Benefits (OPSB) for the years 2004 – 2007. Catalyst replaced CVS Caremark in 2007 as Maryland’s PBM.
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CVS Caremark profits hit the mark
Posted on February 19, 2009 at 8:32 amCVS Caremark (Ticker: CVS) posted fourth-quarter earnings of $949 million, up from $811 million a year ago. Helped by an acquisition, the company’s pharmacy services business, which houses the former Caremark, posted flat revenues and operating earnings.
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Another not-so-recession-proof sign
Posted on January 9, 2009 at 8:19 amThe CEO of CVS Caremark (Ticker: CVS) says fewer people are visiting their doctors and provides 2009 guidance well below expectations.
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