UPDATE: Sterne Agee Initiates Coverage on Quintiles Transnational Holdings with Underperform Rating, $36 PT on Multiple Risk Factors

In a report published Wednesday, Sterne Agee analyst Greg T. Bolan initiated coverage on Quintiles Transnational Holdings Q with an Underperform rating and $36.00 price target. In the report, Sterne Agee noted, “We believe Quintiles is becoming a ‘donor' of market share within the PIIb-IV CRO marketplace, and as such we think the company may struggle to grow its Product Development segment revenues at our estimate for 6-7% PIIb-IV CRO industry growth. We also foresee margin erosion within the PDEV segment as Quintiles fights to maintain market share. Initiate coverage with an Underperform rating and $36 price target.” Quintiles Transnational Holdings closed on Tuesday at $43.95.