Jefferies Maintains Rating, PT On DGX

Jefferies is maintaining its Buy rating and $67 price target on Quest Diagnostics DGX as the company plans nears the end of a medical billing lawsuit. Says Jefferies, in its report, “We are encouraged that DGX is nearing ultimate resolution of the civil lawsuit alleging non-compliance with Medi-Cal billing regulations. Given that the financial terms of the agreement in principle were largely consistent with those under a previously disclosed "understanding" between the related parties, we expect this news to be received positively by investors as it will remove the associated overhang upon final approval.” DGX closed at $56.78 yesterday.