Deutsche Bank Upgrades Quintiles (Q) to Buy

Deutsche Bank upgraded Quintiles (NYSE: Q) from Hold to Buy with a price target of $71.00 (from $78.00). Analyst George Hill highlighted solid outlook and compelling valuation.

"Quintiles reported Q4 EPS of $0.90, beating Street estimates of $0.87 and our $0.88. In constant currency, PDEV revenue grew +12.1% y/y while IHS revenue grew +2.2% y/y. PDEV net new business fell -10.9% off of a tough comp, but with a solid book-to-bill of 1.30x. IHS net new business increased +10.2% with a book-to-bill of 1.38x. In cc, PDEV op. income grew +12.6% while IHS grew +0.7%. Management attributes the drag in IHS to contract timing and cancellations offset by increased demand. Management issued '16 guidance calling for cc revenue growth of 7- 8.5% and EPS of $3.70- $3.85 (+11-16% y/y). We are upgrading Q shares to Buy at a compelling valuation," said Hill.

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 $59.00 yesterday.

You May Also Be Interested In

• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• Equifax (EFX) PT Lowered to $263 at Citi
• UBS Downgrades Hino Motors Ltd. (7205:JP) (HINOY) to Neutral