UPDATE: Bank of America Downgrades Quest Diagnostics on Reduced 2014 EPS Estimate

In a report published Tuesday, Bank of America analyst Robert M. Willoughby downgraded the rating on

from Buy to Underperform, and lowered the price target from $64.00 to $55.00. In the report, Bank of America noted, “Our supportive view on DGX this year was predicated on its meeting low top line growth hurdles, near-term cost cutting, and supportive capital deployment with strong cash flow and proceeds from multiple asset divestitures to the benefit of its ROIC. We were pleased with its share repurchase effort, but DGX's shares underperformed the S&P 500 (+3.5% vs. +26.8%) on disappointing revenues and low cost structure leverage. On weak, continuing 2014 growth and pricing prospects, we are reducing our 2014 EPS estimate to $4.20 (from $4.35). Our P.O. moves to $55 (from $64) on the revised expectation.” Quest Diagnostics closed on Monday at $60.33.