UPDATE: Oppenheimer Initiates Laboratory Corporation of America Holdings at Perform on Industry Headwinds

Oppenheimer initiated coverage on Laboratory Corporation of America Holdings (NYSE: LH) with a Perform rating.Oppenheimer commented, "As the most efficient testing provider, we believe LH is best positioned to absorb the mandated reimbursement cuts and expected future cuts. We also view the company's esoteric business with the acquired genetic counselors as a key point of differentiation. With that said, the industry headwinds cause us to rate the shares Perform. In particular, we believe the 2% sequestration cut will likely be expanded. On the volume front, our survey work points to hospitals continuing to shift volume to their own outpatient and outreach labs. The company's strong cash provides flexibility to deliver shareholder value but we await the results of round two of the fiscal cliff negotiations."Laboratory Corporation of America Holdings closed at $88.66 on Monday.