Jefferies Maintains Hold on Quest Diagnostics

Jefferies has published its research report on Quest Diagnostics DGX following the Jefferies Healthcare Summit yesterday. According to Jefferies, "Management is working hard to prepare for LT growth by building out its salesforce, expanding its specialty test menu, and improving operating efficiencies. We are watching this story closely as investment timing is key." Quest's management reemphasized their decision to recontract with managed care through 2012 and noted that it gives their company "unique opportunities to work with their customers to control expensive out-of-network leakage." Jefferies maintains a Hold rating on DGX. DGX closed Tuesday at $50.12.