UPDATE: Goldman Sachs Downgrades Laboratory Corp. of America Holdings to Sell on Comparative Outlook
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
|Jul 2014||William Blair||Upgrades||Market Perform||Outperform|
|May 2014||Cantor Fitzgerald||Maintains||Buy|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.