Goldman Sachs Maintains Neutral On Omnicare

Goldman Sachs is maintaining its Neutral rating and $32 price target on shares of Omnicare, Inc. OCR. In a note to clients, Goldman Sachs writes, "With our assumption of coverage of Omnicare on June 23, we wanted to provide a deep dive into the company and provide an update our outlook on shares. We believe the overhauled management team has taken significant strides toward redirecting the company on a track toward growth. That said, with shares up 60% off lows last August (S&P up 20%), a challenging long-term care environment, and still some uncertainly around bed count retention and growth, we believe shares are fully valued at this point (in line with group P/E and EV/EBITDA averages). Relative to our Supply Chain coverage, we consider Omnicare well levered to what we view as the two biggest drivers, generics and specialty. However, we see better and more predictable growth at this point from the Drug Distributors given broader patient mix and more limited payor exposure." Shares of OCR closed at $32.13 yesterday.