J.P. Morgan Overweight On Covance

J.P. Morgan Chase & Co. is out with a research report on Covance CVD and it has an Overweight rating and a $60 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "Given the encouraging results in Q2, and somewhat optimistic updated guidance (mid- to high-single digit revenue growth vs. single digit previously and annual EPS guidance floor increase to $2.60 from $2.50 previously), we see Covance as being on track with management expectations for the business, particularly as the Sanofi sites continue to ramp, the Early Stage business takes share, and cost-savings initiatives begin to flow to the bottom-line. While we continue to keep an eye on improvements in the Late Stage business, particularly related to Central Lab, and note that guidance remains back-end loaded for the 2H, we see little to change the underlying investment thesis and remain Overweight, while increasing our Dec-11 price target to $60." Shares of CVD lost 36 cents yesterday to close at $57.68.