Bank of America Merrill Lynch Has Buy On IDEXX Laboratories

Bank of America Merrill Lynch is out with a research report on IDEXX Laboratories IDXX and it has a Buy rating and a $89 price target on shares. In a note to clients, Bank of America Merrill Lynch writes, "PDCO also announced the acquisition of American Veterinary Supply Corp. (AVSC), a full-service regional veterinary distributor. With 2,000 companion animal veterinary customers, AVSC has an established market presence in the New York metropolitan area, and the deal should help IDXX secure a strong foothold in the vicinity, given its exclusive distribution agreement. It may also limit inroads from its competitors, such as ABAXIS, which contracted with AVSC. With just $25 million in annual revenues we don't anticipate a material financial impact, but the deal emphasizes IDXX's growth opportunities as veterinary supply chain consolidation continues." Shares of IDXX lost $1.23 yesterday to close at $74.43.