UPDATE: Deutsche Bank Initiates Quintiles Transnational at Buy on Multiple Positive Factors

In a report published Tuesday, Deutsche Bank analyst Darren Lehrich initiated coverage on Quintiles Transnational Q with a Buy rating and $51.00 price target.

In the report, Deutsche Bank noted, “In an environment characterized by secular tailwinds and increased penetration of CRO outsourcing, we believe Q's operational scale, breadth of service capabilities, and management team experience position it better than any other player in the CRO landscape. Bottom line: we believe Q is a best in breed player in pharma services, and we think Q should be a core large-cap holding for HC services investors. Initiate Buy w/$51 PT (22.5x 2014E EPS of $2.27). Our tgt P/E represents a 15% premium to the peer group's 10-yr fwd P/E avg of 19.5x, justified due to Q's visible backlog and the co's ability to absorb market share gains more profitably than peers due to its scale.”

Quintiles Transnational closed on Monday at $43.53.