Quest Diagnostics, IQVIA slump after Citi downgrades

Laboratory of America Holdings

17/11/2022 15:51

** Shares of Quest Diagnostics  DGX.N  down 4.3% to $142.81,
IQVIA  IQV.N  down 5.1% to $212.50 in Thurs morning trading
    ** Both stocks downgraded by Citi: DGX to "sell" from
"neutral", PT lowered to $125 from $145; IQV to "neutral" from
"buy", PT down to $245 from $275 
    ** Citi analysts say in note that the ratings changes follow
Q3 results across the life science tools and diagnostics space
and "taking stock of outsized moves"
    ** For diagnostics company DGX, Citi analysts "see risk to
the LT guide of +4.0-5.0% growth in the base business along with
additional cost headwinds" and cite premium valuation compared
to lab-testing rival LabCorp  LH.N  
    ** For IQV, the analysts cite contract research co's
"premium multiple" compared to peers Charles River Laboratories
 CRL.N  and ICON  ICLR.O 
    ** YTD, DGX down ~17.5%, IQV down ~25% vs ~6% drop for S&P
500 healthcare index  .SPXHC    
 (Reporting by Lewis Krauskopf)
 ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters
Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net,
Twitter: @LKrauskopf))