UPDATE: Stifel Starts Quintiles (Q) at Hold

October 14, 2016 7:15 AM EDT
Get Alerts Q Hot Sheet
Price: $76.93 -0.84%

Rating Summary:
    9 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - October 14, 2016 10:18 AM EDT)

Stifel initiated coverage on Quintiles (NYSE: Q) with a Hold rating and a price target of $84. Analyst Shlomo H. Rosenbaum said wait for a better entry point.

"We expect the company’s valuation to reflect a blend of Contract Research Organization (CRO) multiples and Information Services multiples since the company was formed through the combination of those types of businesses. We assume the 50% weighting for Info Services will reflect the average valuation in the Info Services space, and the 50% for CROs will be a slight premium to the CRO space, consistent with longer-term historical trends. A blend of 2017 and 2018 P/E and EV/EBITDA multiples yields an $84 valuation – about 12% higher than today’s price, which makes the shares interesting, but not quite a Buy (we prefer closer to 20%). We would be looking for an entry point closer to $70, all else remaining equal," said Rosenbaum.

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

Shares of Quintiles closed at $75.70 yesterday.



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