Bank of America Merrill Lynch Reiterates Buy Rating, $64 PT on Quest Diagnostics

In a report published Wednesday, Bank of America Merrill Lynch reiterated its Buy rating and $64.00 price target on Quest Diagnostics

. BofA Merrill Lynch noted, “We were pleased to see DGX follow through on its objective to refocus on its core diagnostic services business, as we continue to believe streamlining the business model, deleveraging, and returning more to shareholders sooner is the right response to a challenging industry environment. Near term, commercial and government reimbursement pressures and light volume will pressure earnings growth, but a few years down the road, expanded health care coverage, a growing focus on outcomes based care, and substantial cost cutting and share repurchases may facilitate a return to double-digit earnings growth and an attractive ROIC profile, in our view. In the interim, our focus is on strong, continuing cash flow. We reiterate our positive outlook.” Quest Diagnostics closed on Monday at $58.27.