UPDATE: Feltl & Company Downgrades MEDTOX Scientific to Hold Post Acquisition from LabCorp

Feltl & Company lowers its rating on MEDTOX Scientific

from Buy to Hold following its acquisition from LabCorp

. Price target is raised from $21.50 to the acquisition price of $27. Feltl & Company comments, "MEDTOX announced this morning that the company has entered into a definitive merger agreement with LabCorp (LH - not rated) to be acquired for $27.00 a share in cash or approximately $241 million. The companies expect the acquisition to close in the third quarter of this year. We believe this is a fair price for MEDTOX, representing 2.0x our 2012 revenue estimates; lab acquisitions typically take place between 1.5x and 2.5x sales. The acquisition price represents 35.1x our 2012 EPS estimate and 14.2x our 2012 EBITDA estimate." MTOX closed at $26.70 on Friday.