UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Laboratory Corp. of America Holdings on Weak Fundamentals, Downward EPS Revision

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In a report published Wednesday, Deutsche Bank analyst Darren Lehrich reiterated a Hold rating on
Laboratory Corp. of America HoldingsLH
, but lowered the price target from $110.00 to $95.00. In the report, Deutsche Bank noted, “LH sees EPS down ~7% YoY in 2014. LH offered up preliminary 2014 adjusted EPS of $6.50 or -7% YoY and 14% below FactSet consensus $7.56. The outlook calls for +2% YoY rev growth (consensus +2.1%), and implies a surprising level of margin pressure of ~200 bps lower YoY. The outlook implies adjusted EBIT margin of ~16% vs. 2013 ~18% and recent peak margin of ~20% in 2009-2010. We are adjusting EPS and PT lower, and maintain Hold given weak fundamentals. Maintain Hold.” Laboratory Corp. of America Holdings closed on Tuesday at $92.50.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsDarren LehrichDeutsche BankHealth CareHealth Care Services
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