Wells Fargo Resumes Coverage on Quest Diagnostics (DGX) with a Market Perform
More News related to DGX
- Quest Diagnostics to Speak at the UBS Global Healthcare Services Conference
- Health Discovery Corporation Partners with Major New York City Pancreatic Cancer Center to Develop a New Molecular Diagnostic Test for the Early Detection of Pancreatic Cancer
- Deutsche Bank Downgrades Quest Diagnostics (DGX) to Hold; Lowers 2010-11 EPS Estimates
- Highlights From DGX's Q4 Conference Call: Revenues Up 2.7%, EPS Grew 11%; Guides In-line for FY10
- Quest Diagnostics (DGX) Increases Stock Buyback to $750M
More News related to New Coverage
- Janney Montgomery Scott Initiates Coverage on Papa John's International (PZZA) with a Neutral
- Feltl & Co. Initiates Coverage on ActivIdentity (ACTI) with a Buy
- Oscar Gruss Initiates Coverage Airgas (ARG) with a Buy
- Sidoti & Co Initiates Coverage on Solutia (SOA) with a Buy
- RBC Capital Initiates Coverage on Questar (STR) with a Sector Perform
Wells Fargo resumes coverage on Quest Diagnostics (NYSE: DGX) with a Market Perform rating. Valuation range $56-65.
Wells analyst says, "Quest's business is a relatively mature one. Shares could experience multiple expansion over the next couple of years in anticipation of increased growth in 2013-2015 as healthcare reform likely increases the percentage of U.S. citizens with insurance. Until then, we estimate that EBITDA will grow at about 4-6% and EPS at 8-12%. Our 2009 and 2010 EPS estimates are $3.88 and $4.13, respectively...Healthcare reform could prove to be a positive for the company if it significantly increases the percentage of insured individuals. Since many of the company’s tests are for screening, healthcare reform could have a positive impact if it significantly increases the percentage of individuals that have access to some type of preventative healthcare. Quest's operations have a high percentage of fixed costs; therefore each additional test lost or gained often has an extremely high marginal profitability associated with it. However, government estimates do not forecast a significant increase in the insured population until 2013-2015...Its business is relatively mature but could eventually benefit from healthcare reform. The company has consistently improved its operational efficiency and profit margins."
To see all the upgrades/downgrades on shares of DGX, visit our Analyst Ratings page.
Quest Diagnostics Incorporated is a provider of diagnostic testing, information and services.
Related Categories
New CoverageStocks Mentioned
+0.68Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
