UBS Maintains a 'Neutral' on Quest Diagnostics (DGX); Prospects for EPS Growth Brighten
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Price: $244.39 +1.28%
Rating Summary:
15 Buy, 17 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
15 Buy, 17 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Neutral' on Quest Diagnostics (NYSE: DGX) price target raised $2 to $56.
UBS analyst said, "Given the ~11% appreciation in shares of DGX on Tuesday, it is fairly evident to us that investors view DGX’s unexpected CEO succession plan as a potential springboard for accelerated company growth. Further, the announcement that FCF is to now be returned almost fully to shareholders via buybacks (UBSe ~$700 mil annually) and dividends (UBSe $200 mil annually)
also played a key role in renewed enthusiasm."
"We are maintaining our 2011 EPS estimate of $4.23 (vs. company guidance of $4.30-4.35) which includes 1Q11 weather impact ($0.07) and excludes 3Q11 tax gain ($0.05). For 2012, we are lowering our EPS estimate to $4.65 (from $4.70) to reflect lower volume growth, but we remain above Street (currently $4.62) given our belief that our previous buyback estimates were already above Street view."
For more ratings news on Quest Diagnostics click here and for the rating history of Quest Diagnostics click here.
Shares of Quest Diagnostics closed at $56.50 yesterday.
UBS analyst said, "Given the ~11% appreciation in shares of DGX on Tuesday, it is fairly evident to us that investors view DGX’s unexpected CEO succession plan as a potential springboard for accelerated company growth. Further, the announcement that FCF is to now be returned almost fully to shareholders via buybacks (UBSe ~$700 mil annually) and dividends (UBSe $200 mil annually)
also played a key role in renewed enthusiasm."
"We are maintaining our 2011 EPS estimate of $4.23 (vs. company guidance of $4.30-4.35) which includes 1Q11 weather impact ($0.07) and excludes 3Q11 tax gain ($0.05). For 2012, we are lowering our EPS estimate to $4.65 (from $4.70) to reflect lower volume growth, but we remain above Street (currently $4.62) given our belief that our previous buyback estimates were already above Street view."
For more ratings news on Quest Diagnostics click here and for the rating history of Quest Diagnostics click here.
Shares of Quest Diagnostics closed at $56.50 yesterday.
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