Citi downgraded Quest Diagnostics (DGX) to Neutral from Buy with an unchanged price target of $185. The firm believes Quest is well positioned to capitalize on the on-going elevated utilization rate, but says the margin headwinds tied to LifeLabs and the level of dilution related to Haystack launch will pressure the company’s margins and earnings growth. Given this risk, Citi does not believe the stock’s current multiple is sustainable.
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