Canaccord Genuity Starts Quest Diagnostics (DGX) at Hold; Long-Term Outlook Promising, But Lacking N-T Catalysts

Canaccord Genuity initiates coverage on Quest Diagnostics (NYSE: DGX) with a Hold. PT $60.00.

Analyst, Jeffrey Frelick, said, "We believe the long-term outlook for DGX is quite promising, given the recent change in leadership, improving esoteric testing mix, and cost-reduction initiatives. However, it is the lack of near-term catalysts, uncertainty around the CEO succession, and inconsistent capital deployment that keep us on the sidelines for the time being."

"We project 2012 adj. EPS of $4.76 (+5%) and 2013 adj. EPS of $5.04 (+6%) based on esoteric volume growth and $500-650M of share repurchases."

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 $57.83 yesterday.

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