UPDATE: Oppenheimer Starts Quest Diagnostics (DGX) at Underperform on Restructuring Risk and Bearish Industry Dynamics
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Price: $62.50 +0.86%
Rating Summary:
3 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
3 Buy, 15 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade DGX Now!
(Updated - January 29, 2013 8:50 AM EST)
Oppenheimer initiates coverage on Quest Diagnostics (NYSE: DGX) with a Underperform. PT $53.00.
Analyst Bret Jones comments, "While management is taking steps to streamline the company's operations, we believe the industry's headwinds will overshadow progress in the near term. Although a 4.95% reimbursement cut is on the table, if sequestration is averted, we think the industry may have to absorb an even greater pricing decline in a grand bargain scenario. We estimate that, even with the company's proposed cost reductions, reimbursement headwinds will still dominate. With volume growth trailing the industry and cost cutting a multi-year process, we believe the shares of DGX will trail its primary competitor. Therefore, we are initiating coverage with an Underperform rating and a $53 price target."
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 $58.24 yesterday, with a 52 week range of $53.25-$64.87.
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Oppenheimer initiates coverage on Quest Diagnostics (NYSE: DGX) with a Underperform. PT $53.00.
Analyst Bret Jones comments, "While management is taking steps to streamline the company's operations, we believe the industry's headwinds will overshadow progress in the near term. Although a 4.95% reimbursement cut is on the table, if sequestration is averted, we think the industry may have to absorb an even greater pricing decline in a grand bargain scenario. We estimate that, even with the company's proposed cost reductions, reimbursement headwinds will still dominate. With volume growth trailing the industry and cost cutting a multi-year process, we believe the shares of DGX will trail its primary competitor. Therefore, we are initiating coverage with an Underperform rating and a $53 price target."
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 $58.24 yesterday, with a 52 week range of $53.25-$64.87.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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