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

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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
Aug 2014UBSMaintainsBuy
Jul 2014William BlairUpgradesMarket PerformOutperform
May 2014Cantor FitzgeraldMaintainsBuy

View More Analyst Ratings for LH
View the Latest Analyst Ratings

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

 

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