UPDATE: Canaccord Cuts Laboratory Corporation to (LH) to Hold Following 'Dismal' Outlook

December 11, 2013 7:43 AM EST
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Price: $288.34 +1.82%

Rating Summary:
    23 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 11 | New: 18
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(Updated - December 11, 2013 10:53 AM EST)

Canaccord Genuity downgraded Laboratory Corporation of America (NYSE: LH) from Buy to Hold with a price target of $91.00 (from $115.00). The change follows updated guidance.

Analyst Jeffrey Frelick said, "LabCorp provided a dismal initial EPS outlook for 2014 which calls for a ~6-7% Y/Y earnings decline at the midpoint, far below our +8.5% growth estimate and the Street’s +6%."

"Not unlike recent commentary, LH called out utilization pressures, reimbursement pressures, ACA uncertainty and an uptick in high-deductible health plans. At first glance, the guidance looks excessively pessimistic relative to reality. Given LH’s position as the low-cost lab provider, we thought they could endure the market challenges the best, but we miscalculated," he added.

For an analyst ratings summary and ratings history on Laboratory Corporation of America click here. For more ratings news on Laboratory Corporation of America click here.

Shares of Laboratory Corporation of America closed at $99.15 yesterday.

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