Covance Announces $250M Share Buyback

After the close of the market, Covance CVD announced a new $250 million share repurchase program. This authorization is in addition to the ~800K shares remaining under the company's 2007 share repurchase program and represents ~10% of the company's current shares outstanding. Deutsche Bank views this as in incremental positive for Covance, as the stock has underperformed year-to-date but retains attractive long-term secular tailwinds. Based on recent share weakness post 2Q results, Deutsche Bank would expect the company to be active on the repurchase plan on a near-term basis. Deutsche Bank has a Buy rating with a $55 price target on Covance Shares of CVD closed Tuesday at $42.45