UPDATE: Bank of America Upgrades Bio-Reference Laboratories to Buy on Margins, Cash Flow

Bank of America upgrades its rating on Bio-Reference Laboratories

from Neutral to Buy and raises its price objective from $24 to $26. Bank of America comments, "BRLI's returns on commercializing more high end tests in growthier specialty diagnostics niches are becoming more apparent in its income statements with EPS upside surprises in the past four quarters. On industry leading top line growth, we expect the gross profit margin to rise further on an improving esoteric testing mix. Cash flow is also improving, helped by the strengthening earnings and an improving testing and payor mix that is contributing to lower Days Sales Outstanding. Our P.O. moves to $26 (from $24) on the better trends." BRLI closed at $21.71 on Monday.