Express Scripts (NASDAQ:ESRX) Valuation on High End

Absent some short-term catalyst, FBR Capital recommends investors stay on the sidelines with Express Scripts (NASDAQ:ESRX) for now.

FBR said, "At the current level, we view the shares as appropriately valued, taking into account the strategic positioning of the company as a market leader in the PBM industry. We continue to expect Express Scripts to adjust to the ever-changing needs of the marketplace, but believe that stepping to the sidelines is appropriate at this time...While near-term upside does exist if the company were to do another transformative transaction or drug utilization were to meaningfully increase, we are apt to view the current risk-reward profile as more evenly weighted to the industry, hence our move to a Market Perform."

FBR Capital downgraded Express Scripts (NASDAQ:ESRX) from "Outperform" to "Market Perform." Express closed Friday at $56.25, down $0.76, or 1.33 percent FBR boosted their price target on them from $56 to $57.