Deutsche Bank Downgrades Quest Diagnostics (DGX) to Hold

Deutsche Bank downgraded Quest Diagnostics (NYSE: DGX) from Buy to Hold with a price target of $80.00 (from $77.00).

Analyst Darren Lehrich said, "We are downgrading DGX shares to Hold, although we are raising our PT to $80 ($77) on slightly higher EPS est's post-DGX’s recent refi and other modest revisions to our model."

"We remain encouraged by DGX’s ability to return to consistently more +ve operating earnings growth in 2015-16 due to improving underlying vol's, less onerous pricing headwinds and good expense mgt. Yet our investment case on DGX since our 11/13/14 upgrade has largely played-out with DGX near the top-end of its fwd P/E range and shares +23% vs. S&P 500 +3% / S&P Health Care Index +10%. While we acknowledge our est's are slightly above Street, we believe risk/reward at current levels is more balanced," added the analyst.

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 $77.23 yesterday.

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