UPDATE: Citigroup Raises Target on Quest Diagnostics to $62

Citigroup maintains its Neutral rating on Quest Diagnostics

and raises its price target to $63 from $60 on 2014 estimate initiation and SP 500 action since last update. Citigroup says, "DGX shares rallied 7% today on better gross margin and "less bad" declines in organic revenue, organic volumes and routine volumes. We continue to maintain our Neutral rating on the shares and would still favor lab stocks over providers with greater government revenue exposure. That said, we remain cautious with respect to expectations of materially improved patient volume trends." DGX closed at $60.73 a share on Tuesday.