J.P. Morgan Maintains Overweight on Omnicare

J.P. Morgan is out with its report today on Omnicare OCR, maintaining Overweight. In a note to clients, J.P. Morgan writes, "Our rating on Omnicare is Overweight. In our view, Omnicare has a strong platform in a growing industry, and we believe the improvement in script volumes and customer satisfaction, coupled with the company's positive tone, are indicative that the ongoing turnaround is moving in the right direction. We remain positive on the turnaround and continue to view the longer term target of a double-digit 3-year adjusted EPS CAGR from 2011-2013 as impressive, especially as the 2011 EPS guidance essentially implies no growth over 2010. Key factors underlying the return to double-digit earnings CAGR include generics, fewer bed losses, improved operational efficiency, and growth in specialty." J.P. Morgan maintains a $34 PT on OCR. Shares of OCR closed Wednesday at $31.33, down 0.35% from Tuesday's close.