Bio-Reference Laboratories up 6% on BofA Upgrade

Bio-Reference Laboratories

is trading higher on the session following a Bank of America upgrade. The research firm raised BRLI from Neutral to Buy and raised the price objective from $24 to $26. In the note, BofA mentioned that "BRLI's returns on commercializing more high end tests in growthier specialty diagnostics niches are becoming more apparent in its income statements with EPS upside surprises in the past four quarters. On industry leading top line growth, we expect the gross profit margin to rise further on an improving esoteric testing mix. Cash flow is also improving, helped by the strengthening earnings and an improving testing and payor mix that is contributing to lower Days Sales Outstanding." Bio-Reference Laboratories is currently trading at $22.96, a gain of $1.25 or 5.76%.