Deutsche Bank Downgrades Laboratory Corporation of America (LH) to Hold; Finding it Harder to Stay Positive on Shares
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Price: $98.97 +1.32%
Rating Summary:
4 Buy, 18 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 18 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade LH Now!
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, with a 52 week range of $74.57-$97.72.
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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, with a 52 week range of $74.57-$97.72.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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