Auriga Reiterates a 'Hold' on Quest Diagnostics (DGX); 4Q11: A Solid Quarter with Cost Management Highlighted

Auriga reiterates a 'Hold' on Quest Diagnostics (NYSE: DGX) price target raised from $51 to $57."

Auriga analyst said, "DGX reported very solid 4Q11 results highlighted by 3% revenue growth; very solid EBIT margin driven by focused cost management; and an EPS beat. 2012 revenue guidance for 2012 was in line with expectations; while EBIT margin was guided above our projections. 2012 EPS range guided to $4.40-$4.55 which is below our/consensus estimate of $4.60/$4.67 due to higher tax rate in 2012 v. historical rate."

"Our thesis remains unchanged as we continue to view clinical labs as a solid long-term investment due to aging of baby-boomers and continued shift in the approach healthcare is practiced (toward prevention vs. reaction). However, given current valuation, coupled with possible reimbursement pressures, continued stagnant economic growth, and stabilizing but too early to call improving healthcare utilization trends drives us to remain on the sidelines."

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 $60.73 yesterday.

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