UPDATE: Citigroup Lowers PT on Laboratory Corp. of America Holdings on Surprisingly Weak 2014 Guidance

In a report published Wednesday, Citigroup analyst Gary Taylor reiterated a Neutral rating on Laboratory Corp. of America Holdings LH, but lowered the price target from $101.00 to $93.00. In the report, Citigroup noted, “On Tuesday night LH released surprisingly weak initial 2014 ‘cash' EPS guidance, calling for ~7% yty decline vs consensus 9% growth. LH cites an adverse industry environment, although MDCR reimbursement headwinds are expected to diminish in 2014, not accelerate. However, we believe that MDCD and commercial reimbursement pressure on molecular diagnostics is still accelerating. In addition, we continue to expect CMS rebasing of CLFS to drive another material decline of operating income in 2015.” Laboratory Corp. of America Holdings closed on Tuesday at $92.50.