UPDATE: Piper Jaffray Upgrades VCA Antech to Overweight on Multiple Positive Factors

In a report published Friday, Piper Jaffray analyst Kevin K. Ellich upgraded the rating on

from Neutral to Overweight, and raised the price target from $22.00 to $32.00. In the report, Piper Jaffray noted, “We are upgrading shares of WOOF to Overweight from Neutral and raising our PT to $32 (from $22) as we believe 1) investors have increased focus on the reference lab, which is performing nicely, 2) industry trends remain positive which bodes well for the animal hospital business, as well as Antech Diagnostics, and 3) the risk/reward is favorable as we see limited downside since WOOF has ~$120 MM remaining on its share repurchase. 2Q13 results were solid, highlighted by 143 bps of operating margin expansion, 5.2% organic growth in the reference lab business, and a $0.02 EPS beat. While same-store animal hospital growth of 1.3% was disappointing, we believe WOOF will continue to trade higher as cash flow generation is good and the company has over $100 MM in cash on the B/S.” VCA Antech closed on Thursday at $27.88.