J.P. Morgan lowers CVS Caremark PT To $42 (CVS)

J.P. Morgan lowered its CVS Caremark CVS price target to $42 from $45 in a research report published today. In the report, J.P. Morgan states, "The key question after CVS's disappointing 2011 guidance is whether the stock is a compelling value or a value trap. While the latter has been true over the past few years, looking ahead, we believe the integrated PBM-retail pharmacy model should gain traction over the longer term and think 2012 earnings should improve, driven by PBM streamlining benefits, Aetna accretion, generic launches, and share buybacks. However, we point to key risks around 2012 renewals, renewal pricing and pharmacy reimbursement pressure. We expect CVS to be a show-me story during 2011, as investors await color on key PBM renewals and the selling season. We remain cautiously optimistic, but will monitor the situation closely." Shares of CVS Caremark were at $33.01 in after hours trading, up 0.27% from Thursday's market close.