Jefferies Maintains Buy Rating For MHS

Jefferies has published a report regarding Medco Health Solutions' MHS Rating after the loss of the CalPERS contract.

In the report Jefferies writes, "We believe that the loss of MHS's CalPERS contract will adversely impact FY12 EPS by ~0.07, a minuscule amount relative to MHS's projected FY12 EPS of ~$5.00. While the CalPERS loss is negative for MHS, we believe that strong PBM industry fundamentals (particularly the anticipated contribution from the upcoming generic wave) provide solid tailwinds that make MHS shares compelling at current levels. Reiterate Buy/$73PT."

MHS closed at $56.23 yesterday and has a $73 PT.