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UPDATE: Sterne Agee Reiterates Buy Rating, Raises PT on Covance

Related CVD
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In a report published Monday, Sterne Agee Group reiterated its Buy rating on Covance (NYSE: CVD), and raised its price target from $65.00 to $73.00.

Sterne Agee noted, “Over the past 10 years, CVD has traded between 10x and 27x next year earnings estimates (avg: 19x). Our $73 price target is based on 20x our CY14 EPS estimate of $3.63 (consensus: $3.52) which corresponds to a PEG ratio of 0.9 (23% y/y EPS growth in CY14). During the same 10-year period, CVD has commanded an average PEG ratio of 1.2, again based on projected EPS growth in the following year. We believe Covance has the most durable growth prospects over the next 2-3 years; hence the stock deserves a premium to the peer group.”

Covance closed on Friday at $62.54.

Latest Ratings for CVD

Nov 2014CitigroupMaintainsNeutral
Nov 2014KeyBancDowngradesBuyHold
Nov 2014Credit SuisseDowngradesOutperformNeutral

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Posted-In: Sterne Agee GroupAnalyst Color Price Target Analyst Ratings


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