DGX Growth Outlook Improves
Analysts at Goldman Sachs maintain their "sell" rating on Quest Diagnostics Inc (NYSE: DGX)(FREE stock trend analysis). The target price for DGX has been raised from $45 to $51.
Quest Diagnostics has announced a quarterly dividend of $0.10 per share. The company has signaled a high priority for M&A. DGX recently raised $750 million in debt capital and will use most of the proceeds for acquisitions, the analysts say.
According to Goldman Sachs, DGX’s fundamental organic growth is under pressure and acquisitions would be a positive for the company. Quest Diagnostics’ volume growth decelerated during 3Q09, despite the support from flu-related physician office visits. The company is likely to have been facing pricing pressure in the managed care sector due to a tough macro environment.
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