Thursday, April 21, 2011

Quest Diagnostics (DGX) PT Raised on Stronger Volumes

Quest Diagnostics (NYSE:DGX) had its price target raised on it by Kaufman Brothers, citing an improvement in volume at the company.

Kaufman says that, "volume is a leading indicator that Quest is not only retaining its current volume base, but with somewhat spotty reports on the physician office visit front, that it could also be seeing the early signs of "traction" with its specialized sales initiative that could lead to some mild market share gains. Pricing softness disappointed us. Importantly, there is "visibility" on improvement, as contract discounts are set to anniversary in 2H11."

Kaufman Bros. is cutting its full year 2011 EPS estimate from $4.55 to $4.37 and is maintaining its full year 2012 estimate of $4.95. It also raised its full year 2011 revenue by 1 percent to $7,532.9 million.

Quest was trading at $56.71, falling $1.15, or 1.99 percent, as of 2:25 PM EDT. Kaufman maintains a "Buy" rating on Quest Diagnostics, while increasing its price target from $64 to $69.

No comments: