Quest Diagnostics (DGX) PT Lowered to $100 at Baird

Baird analyst Eric Coldwell lowered the price target on Quest Diagnostics (NYSE: DGX) to $100.00 (from $106.00) while maintaining a Outperform rating following the company's 4Q. Revenue missed the lowered November IR day target by ~$40M. $35M of downside due to additional reserve for payer denials, patient concessions, and problems with billing system conversion at an acquired regional lab.

The soft finish to 2018 was driven by same issues cited at Investor Day (final tally a little worse than thought). Similarly, 2019 revenue and minimum EPS guidance is lighter than expected, though DGX may ultimately hit prior Street numbers based on some assumptions that lean conservative.

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