Market Overview

UPDATE: Oppenheimer Initiates Quest Diagnostics at Underperform on Restructuring, Industry Risks

Related DGX
Earnings Scheduled For October 23, 2014
Quest Diagnostics Added To Goldman Sachs Conviction Buy List

Oppenheimer initiated coverage on Quest Diagnostics (NYSE: DGX) with an Underperform rating and a $53.00 price target.

Oppenheimer noted, "While management is taking steps to streamline the company's operations, we believe the industry's headwinds will overshadow progress in the near term. Although a 4.95% reimbursement cut is on the table, if sequestration is averted, we think the industry may have to absorb an even greater pricing decline in a grand bargain scenario. We estimate that, even with the company's proposed cost reductions, reimbursement headwinds will still dominate. With volume growth trailing the industry and cost cutting a multi-year process, we believe the shares of DGX will trail its primary competitor."

Quest Diagnostics closed at $57.94 on Monday.

Latest Ratings for DGX

DateFirmActionFromTo
Jul 2014Canaccord GenuityMaintainsHold
Jul 2014CitigroupMaintainsNeutral
May 2014Bank of AmericaUpgradesUnderperformNeutral

View More Analyst Ratings for DGX
View the Latest Analyst Ratings

Posted-In: OppenheimerAnalyst Color Initiation Analyst Ratings

 

Related Articles (DGX)

Around the Web, We're Loving...

Get Benzinga's Newsletters