Jefferies Maintains Buy on Medco Health Solutions

Jefferies is out with its report today on Medco Health Solutions MHS, maintaining Buy. In a note to clients, Jefferies writes, "We expect MHS shares to trade primarily on the prospects of obtaining regulatory approval for its pending acquisition by ESRX. While MHS is well-positioned to take advantage of the upcoming generic wave, recent contract losses will adversely impact the stock's valuation on a stand-alone basis. We are maintaining our Buy given our view that there is a high likelihood that the acquisition of the company will eventually get approved." At the time of posting, shares of MHS were trading at $64.76, down 1.82% from Friday's close.