Mizuho Securities Downgrades Quest Diagnostics (DGX) to Neutral

August 31, 2016 6:23 AM EDT
Get Alerts DGX Hot Sheet
Price: $83.20 -0.56%

Rating Summary:
    6 Buy, 22 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 30
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Mizuho Securities downgraded Quest Diagnostics (NYSE: DGX) from Buy to Neutral with a price target of $86.00 (from $84.00) on valuation after solid run.

Analyst Ann Hynes commented, "We are downgrading DGX from Buy to Neutral. Since we upgraded the stock on March 1, 2016, DGX (+26%) has outperformed the S&P 500 Healthcare (+10%) and S&P 500 (+13%). The reason for the downgrade is simple: valuation. Our new price target of $86 is based on 17.0x our 2017E adjusted EPS which is the “high” trading average for the clinical laboratory group over the past ten-years. We cannot justify a higher multiple that would be required to maintain a Buy rating. We remain positive on the operational outlook and management team of DGX."

For an analyst ratings summary and ratings history on Quest Diagnostics click here. For more ratings news on Quest Diagnostics click here.

Shares of Quest Diagnostics closed at $83.54 yesterday.

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