BioScrip Inc: Falls as brokerages see short term pain from Option Care merger

Option Care Health

18/03/2019 12:08

** Shares of home healthcare provider  BIOS.O  fall 6.5 pct
to $2.60 premarket, following a ~15 pct plunge in the prior
session
    ** At least 3 brokerages cut their PT on stock; current
median PT $4 vs $5 a month ago
    ** On Friday, BIOS entered deal to merge with Option Care,
which prompted stock to rise initially, but shares reversed
course to trade lower later in the session  urn:newsml:reuters.com:*:nL3N2123JP
    ** On completion of the all-stock deal, Option Care
shareholders will own ~80 pct of the combined co
    ** Canaccord Genuity sees short term pain resulting from
merger, but sees long term potential as deal provides improves
capital structure, lowers PT to $3.50 from $5
    ** SunTrust Robinson says while combination will improve
capital structure, BIOS' cash flow remains critical given heavy
debt load; cuts PT to $3.25 from $5
    ** Current avg rating on stock is "buy"
    ** BIOS has fallen 22 pct this year

 (Reporting by Amy Caren Daniel in Bengaluru)
 ((Reuters Messaging:
Amy.CarenDaniel.thomsonreuters.com@reuters.net))