UPDATE: Credit Suisse Downgrades Covance to Neutral, Raises PT Following Agreement to be Acquired by LH

In a report published Tuesday, Credit Suisse analyst Jeffrey Bailin downgraded the rating on

from Outperform to Neutral, but raised the price target from $97.00 to $103.00. In the report, Credit Suisse noted, “Yesterday morning, LH announced a definitive agreement to acquire CVD for a 32% premium to Friday's close (or $105.12). The deal consideration is $75.76/share in cash and 0.2686 LH shares for each CVD share or an implied price of $102.95 following Monday's share price movements in LH. With shares of CVD climbing 26% to $100.57, we are increasing our TP to $103 and lowering our rating to Neutral from Outperform. Given the reasonably high likelihood of the deal closing, we believe the risk/reward is now more balanced, and would acknowledge reasonable downside in the event (admittedly low probability) that the proposed acquisition is not completed.” Covance closed on Tuesday at $100.57.