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Auriga Reiteratess a 'Hold' on Laboratory Corporation (LH); Expect In-line to Slightly Better 4Q Results

February 9, 2012 1:45 PM EST
LH Hot Sheet
Rating Summary:
    6 Buy, 10 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Auriga reiteratess a 'Hold' on Laboratory Corporation of America (NYSE: LH) price target of $91.00.

Auriga analyst says, "Based on recent results by LH’s largest peer Quest Diagnostics (NYSE: DGX)(Hold Rated) there is a strong possibility that LH may beat our/consensus revenue/EPS estimates for 4Q mainly on improving volume trends. Furthermore, DGX indicated on its call that physician office visits appear to have stabilized, but stopped short from calling it an uptrend. This is a positive data point, which we take into consideration when modeling our 2012 results. That being said, until we confirm a “true” uptrend in lab test volumes we are not willing to assign multiple higher than 13x to derive our price target."

For an analyst ratings summary and ratings history on Laboratory Corporation of America click here. For more ratings news on Laboratory Corporation of America click here.

Shares of Laboratory Corporation of America closed at $91.99 yesterday, with a 52 week range of $74.57-$100.94.


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