UPDATE: Stifel Nicolaus Initiates VCA Antech at Hold on Market Share Concerns

Stifel Nicolaus initiated coverage on VCA Antech

with a Hold rating. Stifel Nicolaus noted, "Valuation is tempting - VCA is trading slightly below its 3 and 5-year NTM P/E averages – but we initiate with a Hold rating due to our belief that VCA's issues extend beyond that of just the economy. Notably we highlight: (1) VCA share losses in the hospital market; (2) why long-term challenges at the reference lab will likely persist; and 3) a sum of the parts analysis which yields a $21-23 stock, largely in-line with the current stock price." VCA Antech closed at $19.72 on Wednesday.