Market Overview

UPDATE: Feltl & Company Downgrades MEDTOX Scientific to Hold Post Acquisition from LabCorp

LabCorp Completes Acquisition of MEDTOX
MEDTOX Announces Settlement With Putative Class Action Plaintiffs Regarding Acquisition by LabCorp

Feltl & Company lowers its rating on MEDTOX Scientific (NASDAQ: MTOX) from Buy to Hold following its acquisition from LabCorp (NYSE: LH). Price target is raised from $21.50 to the acquisition price of $27.

Feltl & Company comments, "MEDTOX announced this morning that the company has entered into a definitive merger agreement with LabCorp (LH - not rated) to be acquired for $27.00 a share in cash or approximately $241 million. The companies expect the acquisition to close in the third quarter of this year. We believe this is a fair price for MEDTOX, representing 2.0x our 2012 revenue estimates; lab acquisitions typically take place between 1.5x and 2.5x sales. The acquisition price represents 35.1x our 2012 EPS estimate and 14.2x our 2012 EBITDA estimate."

MTOX closed at $26.70 on Friday.

Latest Ratings for MTOX

Apr 2012Feltl & Co.MaintainsBuy

View More Analyst Ratings for MTOX
View the Latest Analyst Ratings

Posted-In: Feltl & CompanyAnalyst Color Downgrades Price Target Intraday Update Analyst Ratings


Related Articles (MTOX + LH)

View Comments and Join the Discussion!

Partner Center