UPDATE: Bank Of America Upgrades Quest Diagnostics On Near-Term Outlook
In a report published Thursday, Bank of America analyst Robert M. Willoughby upgraded the rating on Quest Diagnostics (NYSE: DGX) from Underperform to Neutral, and raised the price target from $50.00 to $58.00.
In the report, Bank of America noted, “We hosted investor meetings with management, including CEO Steve Rusckowski and CFO Mark Guinan, in Philadelphia Tuesday. With a challenging 1Q14 EPS report behind it and a consensus view seemingly appropriately set for 2Q14, our concerns over its ability to meet near term expectations are less dire, and downside risk to the shares may be limited.
"While we are maintaining our current revenue and EPS estimates, we are raising our rating to Neutral (from Underperform) and boosting our P.O. to $58 (from $50) reflecting a valuation nearer that of competitor LabCorp of America.”
Quest Diagnostics closed on Wednesday at $55.90.
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