Citi: Quest Diagnostics Announces New CEO

In a research report published this morning by Citi, Quest Diagnostics

has announced Steve Rusckowski as its new CEO - a move that is being seen as tentatively positive. According to Citi, "Our quick reference checks suggest Mr. Rusckowski is well regarded by investors (although perhaps unknown to U.S. healthcare services investors). In addition, Phillips Healthcare has performed well (acknowledging the macro slowdown) even as it absorbed approximately 30 acquisitions over the last decade. DGX is even yet still struggling to fully integrate its own decade-long acquisition binge, so the background appears relevant. On the other hand, the transition from a manufacturer to a directly-reimbursed services company isn't necessarily an easy one to make." Citi maintains its Neutral rating and $63 PT on Quest Diagnostics, which closed yesterday at $59.57.