UPDATE: J.P. Morgan Raises PT on CVS Caremark to $43

J.P. Morgan is out with its report today on CVS Caremark CVS, raising its PT from $42 to $43. In a note to clients, J.P. Morgan writes, "In our view, the FEP mail contract win is a significant positive for the company's PBM business. While we estimate the contract could add ~2% to EPS, more importantly, we point to the positive impact to sentiment given the series of disappointments relating to the company's PBM business. We note that CVS has now won the two largest contracts out for bid over the past year (Aetna and now FEP), which we believe continues to provide a validation of the company's offering. We remain a believer in the integrated model, and believe the company should continue to gain traction in the marketplace. We are increasing our 2012 EPS estimate by $0.05 to $3.16, and nudging up our target price to $43 from $42." Shares of CVS closed Friday at $38.80, up 1.70% from Thursday's close.