Piper Jaffray Raises Price Target on Laboratory Corp. (LH)

Piper Jaffray is out with a research report this morning, where it reiterates its Overweight rating on Laboratory Corp. LH; it has a $98.00 price target on the stock, up from $88.00. The PJ analysts cited the company's recent Genzyme Genetics acquisition, which adds ~$30M and ~$350M in revenue to 2010 and 2011, respectively. Based on favorable management commentary, the analysts believe volume trends are marginally improving, which combined with potential upside from the Genzyme Genetics acquisition keeps them positive on shares. As for valuation, the analysts remarked, “We are transitioning our valuation metrics to F2012. Applying a 14.3x multiple to our $6.82 F2012 EPS estimate yields a $98 price target (was $88).”