UPDATE: Citigroup Downgrades Covance to Neutral

Citigroup lowers its rating on Covance

to Neutral from Buy and lowers its price target to $46 from $55 a share on headwinds and less visibility into 2012 and 2013. Citigroup says, "CVD held its 4Q11 earnings call earlier today discussing 2012 guidance that did little to quell our concerns as presented in its press release yesterday after market. Its FY12 non-GAAP EPS guidance of $2.50-$2.80 was below the already lowered expectations of $2.91 Street/$2.94 Us, with the $2.65 midpoint resulting in a 5c decline in EPS vs. $2.70 for FY11 that just closed. Added investments in numerous I.T. projects were the main culprits, resulting in a greater than expected 32c headwind that will continue through 2013." CVD closed at $43.14 a share on Thursday.