NEW YORK (TheStreet) -- On Monday before the market open, Express Scripts Holding Co. (ESRX) , a St. Louis-based pharmacy benefit management company, was downgraded to "sell" from "hold" at Deutsche Bank.
The firm also lowered its price target to $61 from $93 on Express Scripts as challenging contract negotiations with health benefits provider Anthem (ANTM) continue.
"Given the acrimony between Express Scripts and its largest client Anthem, we increasingly believe Express Scripts is heading towards a significant negative earnings revision as it relates to Anthem, and that the market is not fully discounting this risk," Deutsche Bank said in an analysts note this morning.
Last month, Anthem's management claimed that the company should receive an additional $3 billion a year in prescription drug savings from Express Scripts.
"We estimate the figure is likely closer to $2 billion, and believe that Anthem may believe it is entitled to ancillary earnings streams that do not directly result from its book of business," analysts added.
Express Scripts stock is falling 2.62% to $68.01 in pre-market trading on Monday morning.
Separately, Express Scripts has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and notable return on equity.
You can view the full analysis from the report here: ESRX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.