NEW YORK ( TheStreet) -- Shares of Medco Health Solutions ( MHS), Toll Brothers ( TOL) and Tyco International ( TYC) hit 52-week highs on Wednesday.
Medco Health Solutions The health care company's acquisition by pharmacy benefit manager Express Scripts ( ESRX) is expected to be ruled on by the Federal Trade Commission as soon as Friday, according to Bloomberg. "Express Scripts ESRX and Medco MHS announced Wednesday that they may be able to close their merger as soon as next week," Morningstar analysts wrote in a report on Wednesday. "As we previously indicated, we plan to raise our fair value estimate for Express Scripts to $73 and for Medco to $88. We believe the merger has the potential to create significant revenue and cost synergies." Shares of Medco hit a 52-week high Wednesday of $72.50. The stock's 52-week low of $44.60 was set on Oct. 4. Medco has an estimated price-to-earnings ratio for next year of 14.95 times; the average for health care providers is 17.78. For comparison, Cigna ( CI) has a lower forward P/E of 7.79 times; Express Scripts' forward P/E is 13.01. Thirteen of the 20 analysts who cover Medco rated it hold. Six analysts gave the stock a buy rating and one rated it sell. TheStreet Ratings gives Medco a B grade with a buy rating and a $79.51 price target. The stock has risen 27.67% year to date.
Tyco International The fire protection company announced Wednesday that its flow control division is merging with Pentair ( PNR). Under the all-stock merger, Tyco shareholders will own 52.5% of the combined company and Pentair shareholders will own 47.5%. "We continue to believe TYC management is focused on maximizing shareholder value," Credit Suisse analysts wrote in a March 28 report. "Part of our outperform thesis on TYC (we upgraded TYC on 2/27) was that all three business units (ADT, Commercial F&S, Flow) had takeout potential." Tyco International's stock hit a 52-week high Wednesday of $56.19. The stock's 52-week low of $37.40 was set on Aug. 9. Tyco has an estimated price-to-earnings ratio for next year of 13.48 times; the average for diversified industrials companies is 11.81. Twelve of the 19 analysts who cover Tyco rated it buy; seven analysts gave the stock a hold rating. TheStreet Ratings gives Tyco an A grade with a buy rating and a $61.52 price target. The stock has risen 19.48% year to date.