UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on Quest Diagnostics

In a report published Friday, Credit Suisse Group reiterated its Outperform rating on Quest Diagnostics DGX, but slightly lowered its price target from $68.00 to $67.00. Credit Suisse noted, “DGX reported 2Q12 EPS of $1.17, in line with consensus, but on weakening top-line trends. Given the results, mgmt reduced full-year revenue guidance, implying flat revenue for 2H, but maintained EPS guidance as cost initiatives begin to show results. We are lowering our estimates and target price to reflect the challenging and seemingly worsening industry backdrop. That said, we continue to believe that DGX has opportunity to offset some of top-line pressures with cost reductions. Moreover, commentary from the new CEO suggests greater focus on shareholder returns, which should help support EPS, in our view.” Quest Diagnostics closed on Thursday at $61.04.