UPDATE: Bank of America Upgrades LabCorp on 2014 Industry Clarity

In a report published Friday, Bank of America Merrill Lynch analyst Robert Willoughby upgraded Laboratory Corporation of America (NYSE: LH) to Buy based on better clarity in the industry in 2014.

Willoughby noted that LabCorp of America is facing lower reimbursement and weak, continuing growth metrics. Despite these challenges and the resulting issues with earnings and growth rate, the company's recalibrated fourth quarter and 2014 EPS expectations adequately reflect these issues. In addition, “We see some potential for upside to our 2014 view of $6.50 on more accretive share repurchases. While the laboratory sub-sector remains our least favorite, clarity on industry leader Quest Diagnostics' 2014 opportunity removes an overhang on LH's stock, suggesting its shares can rebound.”

Shares of LabCorp have fallen 17.1% from a recent high in November. LapCorp closed at $89.06 on Thursday and shares are currently trading up 1.11% at $90.05.