Oppenheimer Assigns Perform On Laboratory Corporation Of America Shares
In a research report issued today, Oppenheimer analyst Bret Jones assigned a Perform rating on Laboratory Corporation Of America (NYSE:LH). No price target was given.
Jones observed, “LabCorp delivered strong volume growth this quarter, aided by ACA. However, the newly covered lives continue to have a negative effect on payor and test mix. Management again raised full-year EPS guidance, which primarily reflects strong volumes this quarter. We remain concerned by the continued deterioration in gross margin, despite significantly higher volume growth. Adjusting for the price and mix impact implies flat gross margins, which we would not expect to see given the high fixed cost nature of the business. We continue to believe the shares are fairly valued and will remain range-bound, until margins begin to at least stabilize.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bret Jones has a total average return of 0.6% and a 54.5% success rate. Jones is ranked #2072 out of 3350 analysts.