Bank of America Merrill Lynch Reiterates Buy Rating, $64 PT on Quest Diagnostics
In a report published Wednesday, Bank of America Merrill Lynch reiterated its Buy rating and $64.00 price target on Quest Diagnostics (NYSE: DGX).
BofA Merrill Lynch noted, “We were pleased to see DGX follow through on its objective to refocus on its core diagnostic services business, as we continue to believe streamlining the business model, deleveraging, and returning more to shareholders sooner is the right response to a challenging industry environment. Near term, commercial and government reimbursement pressures and light volume will pressure earnings growth, but a few years down the road, expanded health care coverage, a growing focus on outcomes based care, and substantial cost cutting and share repurchases may facilitate a return to double-digit earnings growth and an attractive ROIC profile, in our view. In the interim, our focus is on strong, continuing cash flow. We reiterate our positive outlook.”
Quest Diagnostics closed on Monday at $58.27.
Latest Ratings for DGX
|Mar 2015||JMP Securities||Initiates Coverage on||Market Perform|
|Mar 2015||Deutsche Bank||Downgrades||Buy||Hold|
|Mar 2015||Canaccord Genuity||Upgrades||Hold||Buy|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.