UPDATE: Citi Lowering Price Target on Catalyst Health Solutions

Citi Investment Research is out with a research report on Catalyst Health Solutions, Inc. (NASDAQ: CHSI) and it is lowering its price target to $63 from $74, and it has a Buy rating on shares.

In a note to clients, Citi Investment Research writes, "CHSI shares have sold off about 15% since the company lowered 2012 EPS guidance and announced the increased spending. We believe the decline may have created a unique entry point for patient shareholders, recognizing that the fruits of Catalysts' investments in both WHI and the Invest Now initiative are not likely to be known until 2H-12. Our target price of $63 is based on 23x 2012E EPS of $2.74, reflecting our 2010-2015 EPS CAGR of 22-24%. While CHSI shares could tread water for the remainder of this year, new business wins and the delivery of acquisition synergies could drive share price outperformance in 2012."

Shares of CHSI lost $1.83 yesterday to close at $47.36.