UPDATE: Credit Suisse Upgrades Quest Diagnostics To Outperform

Credit Suisse is upgrading shares of Quest Diagnostics DGX to Outperform from Neutral and raising the target price to $65 from $62. The combination of recent improvement in underlying volume indicators, low expectations, and discounted valuation bodes well for the stock. Credit Suisse sees favorable risk/reward as it view Quest as an attractive LBO candidate, which should provide valuation support. Additionally, Credit Suisse views Quest as an attractive LBO candidate given the solid and stable business model, margin expansion opportunity, and strong cash flow and return characteristics. While the upgrade is not based on a takeout, Credit Suisse believes it provides valuation support. DGX is trading higher at $56.03