UPDATE: Jefferies Initiates Coverage on Quintiles Transnational Holdings with Hold Rating, $41 PT on Valuation

In a report published Tuesday, Jefferies analyst David Windley initiated coverage on

with a Hold rating and $41.00 price target. In the report, Jefferies noted, “The late-stage CRO market is poised to grow 7-9% over the next several years, according to March survey data. Quintiles should trend up to that rate, while late-stage peers are above that. Q's margins are closer to ‘peak' than its peers leading to slower earnings growth. With the growth differential, Q's valuation handsomely rewards its leadership position among CROs. PT $41. Jefferies served as co-lead manager on Q's IPO.” Quintiles Transnational Holdings closed on Monday at $43.53.