Mizuho Securities Upgrades Quest Diagnostics (DGX) to Buy

Mizuho Securities upgraded Quest Diagnostics (NYSE: DGX) from Neutral to Buy with a price target of $75.00 (from $68.00).

Analyst Ann Hynes commented, "We are upgrading Quest Diagnostics (DGX) shares to a Buy rating from Neutral and raising our price target to $75 from $68. Our new multiple is based on the blended clinical laboratory 10-year forward PE trading average versus our previous valuation target multiple of 13.5x, which was based on DGX’s five-year forward historical. We believe that upside to the current valuation comes from: 1) the enhanced visibility in DGX reaching its long-term 2015-2017 guidance and stable earnings results; 2) continued solid execution of its Invigorate savings; 3) solid free cash flow and balance sheet trends (debt/TMM is ~2.6x); 4) high dividend yield of 2%; and 5) lack of international exposure."

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 $66.53 yesterday.

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