J.P. Morgan Overweight On Covance (CVD)

J.P. Morgan Chase & Co. has an Overweight rating on Covance CVD after it reported Q3 earnings. It has a $48 price target on shares. In a note to clients, J.P. Morgan writes, "Covance reported 3Q10 results that were roughly in line with our expectations, though 4Q10 EPS guidance of sequentially flat revenues and EPS of $0.50-0.55 is below our and consensus estimates, reflecting the “softer market conditions” across much of the portfolio. The company did announce the well-telegraphed and long-awaited facility closure (toxicology in Vienna, Virginia). These results point to continued overcapacity issues in the preclinical toxicology market." Shares of CVD gained 45 cents yesterday to close at $47.26, a gain of 0.96%.