UPDATE: Credit Suisse Assumes Coverage on Laboratory Corp. of America Holdings with Neutral Rating, $95 PT
In a report published Friday, Credit Suisse assumed coverage on Laboratory Corp. of America Holdings (NYSE: LH) with a Neutral rating and $95.00 price target.
Credit Suisse noted, “We are assuming coverage of LH, maintaining the previous Neutral rating. Recall LH is the second largest independent clinical laboratory in the U.S. with ~10% market share. We acknowledge the company enjoys industry leading margins driven in large part by its IT and automation efforts, but despite its strong operations & execution track record, we believe the industry currently faces multiple top-line headwinds. Moreover, with LabCorp currently trading at 12.9x our F13 EPS estimate and 7.5x our F13 EBITDA estimate, roughly in line with historic averages, we believe the current risk/reward profile is more balanced.”
Laboratory Corp. of America Holdings closed on Thursday at $90.46.
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Tags: Credit Suisse