J.P. Morgan Initiates Coverage On Clinical Laboratories With Neutral Rating

According to J.P. Morgan, Clinical Laboratories LH coverage is initiated with a Neutral rating. J.P. Morgan said that it is initiating coverage on the two large clinical laboratories, LabCorp (LH) and Quest Diagnostics (DGX). “We initiate coverage on Quest (DGX) with a Neutral rating and Dec-2012 price target of $64 (~9.4% upside). Our $64 PT is based on a 13.5x P/E multiple which equates to 7.6x on an EV/EBITDA basis on our 2012 estimates.” Clinical Laboratories closed yesterday at $96.62.