S&P Capital IQ Reiterates its BUY Rating on Laboratory Corporation of America

October 21 00:00 2011

NEW YORK, October 21 (RainbowNewsLine.com) – Analyst Jeffrey Loo of S&P Capital IQ reiterates his BUY rating on the shares of Laboratory Corporation of America (NYSE:LH). The target price is set to $110.

Analyst Jeffrey Loo, in a research note published yesterday, mentions that the company reported its Q3 EPS marginally ahead of the estimates, while sales were short of the estimates as physician visits remain soft. Laboratory Corporation of America reported 2.1% growth in testing volumes and 7.8% growth in revenue per acquisition driven by Genzyme Genetics acquisition, analyst says. Despite of esoteric testing, the company recorded a drop in operating margins & gross margins by 80 bps & 90 bps respectively. The 2011 EPS guidance has been narrowed from $6.17-$6.32 to  $6.28-$6.33.