Investment Analysts’ Weekly Ratings Changes for Laboratory Corp. of America (LH)

Laboratory Corp. of America (NYSE: LH) recently received a number of ratings updates from brokerages and research firms:

  • 1/8/2019 – Laboratory Corp. of America was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Following a dismal third quarter show, shares of LabCorp have once again started to slid on account of the company's 2018 guidance cut, announced on November 30.  According to LabCorp, lower-than-expected volume growth within LabCorp Diagnostics, which is also expected to persist for the remainder of the year, compelled the company to lower its full-year guidance. In the past three months, LabCorp has underperformed its industry. On a positive note, increasing acquisitions and organic volume expansion positively contributed to LabCorp Diagnostics business in the last-reported quarter. This apart, Covance Drug Development has reported sturdy growth. This uptrend was primarily owing to strategic acquisitions and robust organic growth.”
  • 1/7/2019 – Laboratory Corp. of America was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 1/3/2019 – Laboratory Corp. of America was downgraded by analysts at Bank of America Corp from a “neutral” rating to an “underperform” rating.
  • 1/2/2019 – Laboratory Corp. of America was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Following a dismal third quarter show, shares of LabCorp have once again started to slid on account of the company's 2018 guidance cut, announced on November 30.  According to LabCorp, lower-than-expected volume growth within LabCorp Diagnostics, which is also expected to persist for the remainder of the year, compelled the company to lower its full-year guidance. In the past three months, LabCorp has underperformed its industry. On a positive note, increasing acquisitions and organic volume expansion positively contributed to LabCorp Diagnostics business in the last-reported quarter. This apart, Covance Drug Development has reported sturdy growth. This uptrend was primarily owing to strategic acquisitions and robust organic growth.”
  • 12/20/2018 – Laboratory Corp. of America was given a new $177.00 price target on by analysts at Morgan Stanley. They now have a “buy” rating on the stock.
  • 12/9/2018 – Laboratory Corp. of America had its price target lowered by analysts at Goldman Sachs Group Inc from $190.00 to $180.00.
  • 12/9/2018 – Laboratory Corp. of America had its price target lowered by analysts at Morgan Stanley from $202.00 to $180.00.
  • 12/6/2018 – Laboratory Corp. of America had its price target lowered by analysts at KeyCorp from $210.00 to $165.00. They now have an “overweight” rating on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 12/3/2018 – Laboratory Corp. of America had its price target lowered by analysts at Barclays PLC from $205.00 to $165.00. They now have an “overweight” rating on the stock.
  • 12/3/2018 – Laboratory Corp. of America had its price target lowered by analysts at Morgan Stanley from $202.00 to $180.00. They now have an “overweight” rating on the stock.
  • 12/3/2018 – Laboratory Corp. of America had its price target lowered by analysts at Citigroup Inc from $171.00 to $160.00. They now have a “neutral” rating on the stock.
  • 12/3/2018 – Laboratory Corp. of America was downgraded by analysts at Bank of America Corp from a “buy” rating to a “neutral” rating.
  • 12/3/2018 – Laboratory Corp. of America was downgraded by analysts at Craig Hallum from a “buy” rating to a “hold” rating.
  • 12/3/2018 – Laboratory Corp. of America had its price target lowered by analysts at SunTrust Banks, Inc. to $175.00. They now have a “buy” rating on the stock.
  • 12/3/2018 – Laboratory Corp. of America had its “buy” rating reaffirmed by analysts at William Blair.
  • 12/2/2018 – Laboratory Corp. of America had its “hold” rating reaffirmed by analysts at Canaccord Genuity. They now have a $155.00 price target on the stock, down previously from $162.00. They wrote, “We lower our estimates and PT from $162 to $155, which now uses a 13.8x multiple on our lower ’19 Adj. EPS of $11.30.””
  • 12/2/2018 – Laboratory Corp. of America had its price target lowered by analysts at Goldman Sachs Group Inc to $190.00.
  • 12/1/2018 – Laboratory Corp. of America was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 11/30/2018 – Laboratory Corp. of America was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “LabCorp posted a dismal quarter with adjusted earnings and revenues both missing the respective Zacks Consensus Estimate. While increasing acquisitions and organic volume expansion positively contributed to LabCorp Diagnostics business in the quarter, the disposition of certain businesses and the implementation of the Protecting Access to Medicare Act (PAMA) dented growth. The revised 2018 guidance also fails to inspire us about the company’s future performance. Covance Drug Development, however, has reported sturdy growth. This uptrend was primarily owing to strategic acquisitions and robust organic growth. Nevertheless, adverse currency headwind impacted the top line. This apart, the current economic uncertainty including challenging reimbursement scenario for testing labs and utilization weaknesses are looming headwinds for LabCorp. In the past three months, LabCorp has underperformed its industry.”
  • 11/30/2018 – Laboratory Corp. of America was downgraded by analysts at Goldman Sachs Group Inc from a “conviction-buy” rating to a “buy” rating. They now have a $180.00 price target on the stock, down previously from $190.00.
  • 11/21/2018 – Laboratory Corp. of America was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “LabCorp posted a dismal quarter with adjusted earnings and revenues both missing the respective Zacks Consensus Estimate. While increasing acquisitions and organic volume expansion positively contributed to LabCorp Diagnostics business in the quarter, the disposition of certain businesses and the implementation of the Protecting Access to Medicare Act (PAMA) dented growth. The revised 2018 guidance also fails to inspire us about the company’s future performance. Covance Drug Development, however, has reported sturdy growth. This uptrend was primarily owing to strategic acquisitions and robust organic growth. Nevertheless, adverse currency headwind impacted the top line. This apart, the current economic uncertainty including challenging reimbursement scenario for testing labs and utilization weaknesses are looming headwinds for LabCorp. In the past three months, LabCorp has underperformed its industry.”

NYSE:LH opened at $131.92 on Monday. The firm has a market capitalization of $13.09 billion, a P/E ratio of 13.74, a price-to-earnings-growth ratio of 1.32 and a beta of 1.09. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.44 and a current ratio of 1.55. Laboratory Corp. of America Holdings has a 12 month low of $119.38 and a 12 month high of $190.35.

Laboratory Corp. of America (NYSE:LH) last posted its earnings results on Wednesday, October 24th. The medical research company reported $2.74 EPS for the quarter, missing the consensus estimate of $2.88 by ($0.14). The business had revenue of $2.83 billion during the quarter, compared to analysts’ expectations of $2.84 billion. Laboratory Corp. of America had a net margin of 13.27% and a return on equity of 17.13%. The business’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same period last year, the company earned $2.46 EPS. Analysts predict that Laboratory Corp. of America Holdings will post 10.99 EPS for the current fiscal year.

In related news, Director R Sanders Williams sold 350 shares of the stock in a transaction on Tuesday, November 27th. The stock was sold at an average price of $162.14, for a total value of $56,749.00. Following the transaction, the director now owns 7,886 shares of the company’s stock, valued at $1,278,636.04. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Kerrii B. Anderson sold 3,700 shares of the stock in a transaction on Monday, November 5th. The shares were sold at an average price of $163.29, for a total value of $604,173.00. Following the completion of the transaction, the director now directly owns 21,795 shares in the company, valued at approximately $3,558,905.55. The disclosure for this sale can be found here. Corporate insiders own 0.73% of the company’s stock.

A number of large investors have recently bought and sold shares of LH. State of Alaska Department of Revenue grew its holdings in shares of Laboratory Corp. of America by 8.8% during the fourth quarter. State of Alaska Department of Revenue now owns 95,515 shares of the medical research company’s stock worth $12,067,000 after purchasing an additional 7,688 shares during the last quarter. Cerebellum GP LLC purchased a new position in shares of Laboratory Corp. of America during the fourth quarter worth about $248,000. CENTRAL TRUST Co grew its holdings in shares of Laboratory Corp. of America by 22.0% during the fourth quarter. CENTRAL TRUST Co now owns 1,301 shares of the medical research company’s stock worth $164,000 after purchasing an additional 235 shares during the last quarter. Chesley Taft & Associates LLC grew its holdings in shares of Laboratory Corp. of America by 26.9% during the fourth quarter. Chesley Taft & Associates LLC now owns 5,330 shares of the medical research company’s stock worth $673,000 after purchasing an additional 1,130 shares during the last quarter. Finally, Private Trust Co. NA purchased a new position in shares of Laboratory Corp. of America during the fourth quarter worth about $416,000. 90.90% of the stock is currently owned by hedge funds and other institutional investors.

Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. It operates through two segments, LabCorp Diagnostics and Covance Drug Development. It offers a range of clinical laboratory tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, hemoglobin A1C, prostate-specific antigen, tests for sexually-transmitted diseases, hepatitis C tests, vitamin D, microbiology cultures and procedures, and alcohol and other substance-abuse tests that are used by hospitals, physicians and other healthcare providers and commercial clients to assist in the diagnosis, monitoring and treatment of diseases and medical conditions through the examination of substances in blood, tissues, and other specimens.

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