UPDATE: Piper Jaffray Upgrades Covance (CVD) to Overweight on Valuation

Piper Jaffray upgraded Covance (NYSE: CVD) from Neutral to Overweight. with a price target of $99.

Analyst Sean W. Wieland said, "We are upgrading to Overweight based on valuation, opportunities for operating leverage, and our view that investments in I/T position the company well for the macrotheme of data driven healthcare. We are maintaining our 22x multiple on our increased CY15 EPS estimate of $4.50 per share, yielding a price target of $99 (from $96)."

"CVD now trades at 18x our CY15 EPS, which is by no means a trough multiple for CROs, but it is a significant pullback from the peak multiples of 24x seen only months ago. The last time valuation hit peak multiples was in 2008," he added.

For an analyst ratings summary and ratings history on Covance click here. For more ratings news on Covance click here.

Shares of Covance closed at $81.91 yesterday.

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