J.P. Morgan Maintains Overweight on CVS Caremark

J.P. Morgan is out with its report today on CVS Caremark CVS, maintaining Overweight. In a note to clients, J.P. Morgan writes, "Our rating on CVS Caremark is Overweight. We are a believer in the integrated PBM-retail pharmacy model, and believe the company should gain traction in the marketplace over time. We believe recent contract wins including Aetna and FEP mail provide a key validation of the company's model. Further, we think earnings growth should improve in 2012 (driven by a reacceleration in growth on the PBM side), based on generic launches, Aetna accretion, PBM streamlining benefits, and share buybacks." Shares of CVS closed Tuesday at $37.37, up 0.32% from Monday's close.