J.P. Morgan Raises Price Target On Medco Health Solutions (MHS)

J.P. Morgan Chase & Co. is raising its price target on Medco Health Solutions, Inc. MHS to $78 from $74 after it reported earnings yesterday. It has an Overweight rating on shares. In a note to clients, J.P. Morgan writes, "For 2010, we raised our adjusted EPS estimate from $3.38 to $3.40, which is at the upper end of the new $3.38-$3.40 guidance. For 2011, our new adjusted EPS estimate is $4.06, which is based on the new methodology for calculating adjusted EPS (excluding all intangible asset amortization), is at the midpoint of the guidance range and implies 14% y/y growth on an apples-to-apples basis. For 2012, we are maintaining our GAAP EPS estimate, which implies $5.00 in adjusted EPS (up from $4.77 under the old methodology). This conservatively equates to 23% y/y growth in 2012." Shares of MHS gained $5.63 yesterday to close at $58, a gain of 10.75%.