Market Overview

UPDATE: Goldman Sachs Downgrades Laboratory Corp. of America Holdings to Sell on Comparative Outlook

Share:
Related LH
UPDATE: Credit Suisse Upgrades Laboratory Corporation Of America As Guidance Remains Interesting
Benzinga's Top Upgrades

Goldman Sachs reduced its rating on Laboratory Corp. of America Holdings (NYSE: LH) from Neutral to Sell with a $83 price target.

Goldman Sachs noted, "We downgrade LH shares to Sell from Neutral as we see better relative upside to the balance of our Tools and Diagnostics coverage universe. Our new 6-month price target of $83 (from $85) implies 1% upside (vs. 12% for the group on average). Our thesis is based on our view that (1) any volume upside driven from the Affordable Care Act (ACA) is likely to come at the cost of pricing and margins, (2) upside to consensus EPS will depend on an increasing amount of financial leverage, and (3) aggressive capital allocation is unlikely to drive significant multiple expansion."

Laboratory Corp. of America Holdings closed at $83.21 on Friday.

Latest Ratings for LH

DateFirmActionFromTo
Feb 2015Goldman SachsReinstatesConviction Buy
Feb 2015Piper JaffrayUpgradesNeutralOverweight
Feb 2015Wells FargoReinstatesMarket Perform

View More Analyst Ratings for LH
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Intraday Update Analyst Ratings

 

Related Articles (LH)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga PRO content