UPDATE: Oppenheimer Initiates Quest Diagnostics at Underperform on Restructuring, Industry Risks
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
|Jul 2014||Canaccord Genuity||Maintains||Hold|
|May 2014||Bank of America||Upgrades||Underperform||Neutral|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.