UPDATE: Credit Suisse Raises Price Target on Quest (DGX), Volume Trends Look Positive for 2011

Credit Suisse upgraded shares of Quest Diagnostics (NYSE: DGX) from Neutral to Outperform, while lifting its price target from $62 to $65.

The firm believes the combination of recent improvements in underlying volume indicators, low expectations, and discounted valuation bodes well for the stock. It also feels the company is an attractive LBO candidate which should slightly drive up its valuation support.

After posting two solid years of negative volume trends, the company is finally expected to post positive results in 2011. The firm notes Quest's new Google Lab Search Tracker also shows positive volume momentum for 1Q.

Credit Suisse feels that DGX's guidance is conservative. The firm is raising its EPS estimates for 2011 to $4.47 from $4.45, 2012 to $4.87 from $4.81 and its 2013 to $5.31 to $5.12.

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