Is Express Scripts Holding Co (NASDAQ:ESRX) Growing Stronger?

[Bloomberg] Express Scripts Holding Co (NASDAQ:ESRX)(TREND ANALYSISArgus reaffirmed its Buy rating and $135 price target on AmerisourceBergen Corp. (NYSE: ABC) shares as the extension of contracts with Kaiser Permanente and Express Scripts Holding Company (NASDAQ: ESRX) should boost revenue.

Kaiser and Express are two of ABC’s largest customers, with Express accounting for 16 percent of FY15 revenue, trailing only Walgreens Boots Alliance Inc (NASDAQ: WBA), at 30 percent. The Kaiser contract has been extended for five years, while Express Scripts contract extended for one year.

“At the same time, businesses such as MWI, PharMedium, and World Courier are driving higher profitability. As one of the largest pharmaceutical distributors, ABC is also likely benefit from the increased utilization of generic and specialty drugs,” analyst David Toung wrote in a note.

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Express Scripts Holding Co (NASDAQ:ESRX) stock is currently trading 21.79% below its 52-week-high, 6.42% above its 52-week-low. The 1-year stock price history is in the range of $65.55 – $89.2. Express Scripts Holding Co (ESRX) has a price to earnings ratio of 17.24 versus Healthcare sector average of 40.79. ESRX stock price has underperformed the Nasdaq by 25.8%. The Pharmacy Services company is currently valued at $43.96 billion, and its share price closed the last trading session at $69.76. The stock has a 50-day moving average of $70.88 and a 200-day moving average of $73.73.

Express Scripts Holding Co (ESRX) current short interest stands at 26.46 million shares. It has increased by 1% from the same period of last month. Around 5% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.71 million shares, the number of days required to cover the short positions stand at 9.8 days.

ESRX is forecasted to report earnings per share of $1.74 and a revenue of $25.56 billion for the 3rd Quarter of the fiscal year 2016. Express Scripts Holding Co (ESRX) expects to post results on October 25. The Pharmacy Services company announced last quarter earnings per share of $1.57 against a consensus Street estimate of $1.57, matching the average estimate. The company posted a revenue of $25.22 billion compared to an estimation of $25.42 billion.

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There are currently twenty-five analysts that cover Express Scripts Holding Co stock. Of those twenty-five, ten have a Buy rating, twelve have a Hold rating and three have a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $83.37.

A recent analyst activity consisted of UBS who initiated their coverage on the stock with Neutral rating on October 6. UBS fixed their price target at $76. This corresponds to a 8.94% upside from the last closing price. On the date of report, the stock closed at $70.35.

Credit Suisse reiterated their Outperform stance on October 3. On the date of report, the stock closed at $69.96.

Another research firm was Leerink Partners who reiterated their Market Perform stance on August 31. Leerink Partners fixed their price target at $80. This translates to a 14.68% upside from the last closing price. On the date of report, the stock closed at $72.7.

Company snapshot

Express Scripts Holding Company. is a full service pharmacy benefit management and specialty managed care company serving clients throughout North America. The Company’s customers include managed care organizations, insurance carriers, third party administrators, employers, and union-sponsored benefit plans.

Is Express Scripts Holding Co (NASDAQ:ESRX) Growing Stronger? was last modified: October 17th, 2016 by Steven Finley