Deutsche Bank Downgrades Laboratory Corporation of America (LH) to Hold; Finding it Harder to Stay Positive on Shares

July 19, 2012 11:13 AM EDT Send to a Friend
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Price: $100.44 -0.51%

Rating Summary:
    8 Buy, 21 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 20 | New: 31
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Deutsche Bank downgraded Laboratory Corporation of America (NYSE: LH) from Buy to Hold with a price target of $94.00 (from $98.00).

Deutsche analyst said, "Our stance (and Buy rating) on LH has, for quite some time, been underpinned by a more favorable view of LH's rev growth profile. However, we believe LH's decelerating top-line trends are shaping up to be more persistent, and EPS growth will become even more reliant on M&A and share buyback, which will deserve a lower multiple. Q2'2012 results highlight LH's rev growth challenges, w/growth of +1.4% falling 100-150 bps short of expectations due to flat volumes and flat/down organic growth (excl. M&A). As LH's revenue guidance devolves into a GDP-like outlook, we find it hard to stay positive on the shares."

FY12 EPS estimate from $7.15 to $7.00 and FY13 from $7.50 to $7.20.

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 $93.64 yesterday.


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