Market Overview

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

Related LH
Will LabCorp (LH) Miss Earnings Estimates? - Analyst Blog
ARCA biopharma Announces Screening of First Patient in Phase 2B/3 Clinical Trial Evaluating Gencaro in Atrial Fibrillation

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.

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

 

Most Popular

Related Articles (LH)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free

Benzinga Professional