Catalyst Health Provides FY2011 Guidance

Piper Jaffray has published a research report on Catalyst Health Solutions CHSI after the company reported very strong 3Q results that exceeded almost all expectations. In the report, Piper Jaffray writes "Given the confusion in recent months regarding speculation over contract renewals and the financial impact from the recently completed FutureScripts acquisition, we believe the improved contract visibility and strong Q3 results should be reassuring to investors. Importantly, CHSI reaffirmed its FY10 outlook for GAAP EPS and established initial 2011 guidance, which we view as conservative. We expect some confusion from investors surrounding the FY11 EPS guidance given the impact of FutureScripts and the new Adjusted EPS definition." Piper Jaffray maintains its Overweight rating and $50 price target. Catalyst Health Solutions closed yesterday at $38.01.