NEW YORK (TheStreet) -- Shares of Omnicare (OCR) are falling by 0.23% to $94.73 in Thursday's morning trading session after analysts at Goldman Sachs downgraded the nursing-home pharmacy company to "neutral" from "buy" with a price target of $92.
The key catalyst for the stock, which was CVS Health (CVS) announcing in May that it will buy Omnicare for $12.7 billion, or $98 per share, has fully played out, analysts said.
At the time of this agreement, analysts viewed the company as an attractive investment option, given that it was a unique specialty asset and it had concentrated exposure to the aging demographic.
However, while their views have changed from the past, there are still a variety of profit growth drivers for the company, including its acceleration in generic launches, analysts noted.
Separately, TheStreet Ratings team rates OMNICARE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate OMNICARE INC (OCR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: