Raymond James Upgrades Quintiles Transnational Holdings to “Strong-Buy” (Q)
Quintiles Transnational Holdings (NYSE:Q) was upgraded by equities research analysts at Raymond James from an “outperform” rating to a “strong-buy” rating in a research note issued to investors on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $50.00 target price on the stock. Raymond James’ price objective suggests a potential upside of 20.25% from the stock’s previous close.
The analysts wrote, “We are upgrading shares of Quintiles to a Strong Buy from an Outperform and maintaining our $50 price target. Our upgrade is due to our continued bullish thesis for the late stage contract research organization (CRO) space coupled with Q’s underperformance in the past week (-6.9% vs. -2.3% for both the S&P 500 and the late-stage CRO peer group). Q is currently trading at a favorable valuation of 18.1x our CY14 non-GAAP EPS vs. an average 21.8x multiple for the late stage peer group. We continue to like the late stage CRO space as 1) we expect pharma R&D spending to modestly rebound, 2) outsourcing penetration levels are increasing; 3) the larger CROs are gaining market share from the smaller ROs as they have greater geographic scope and therapeutic expertise. In particular, we like Quintiles as the company is the largest player in the CRO space (1.7x larger than its closest peer by 2012 revenue) and the company has very low customer concentration.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Credit Suisse initiated coverage on shares of Quintiles Transnational Holdings in a research note to investors on Monday, September 23rd. They set an “outperform” rating and a $52.00 price target on the stock. They noted that the move was a valuation call. Separately, analysts at UBS AG initiated coverage on shares of Quintiles Transnational Holdings in a research note to investors on Tuesday, September 17th. They set a “buy” rating and a $51.00 price target on the stock. They noted that the move was a valuation call. Finally, analysts at Zacks upgraded shares of Quintiles Transnational Holdings from a “neutral” rating to an “outperform” rating in a research note to investors on Tuesday, August 13th. They now have a $49.30 price target on the stock. One analyst has rated the stock with a sell rating, four have given a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $48.52.
Quintiles Transnational Holdings (NYSE:Q) opened at 41.58 on Wednesday. Quintiles Transnational Holdings has a 1-year low of $41.10 and a 1-year high of $47.50. The stock has a 50-day moving average of $43.92 and a 200-day moving average of $44.00. The company has a market cap of $5.361 billion and a P/E ratio of 28.70.
Quintiles Transnational Holdings (NYSE:Q) last released its earnings data on Thursday, August 1st. The company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.04. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $942.30 million. The company’s revenue for the quarter was up 5.3% on a year-over-year basis. Analysts expect that Quintiles Transnational Holdings will post $2.01 EPS for the current fiscal year.
Quintiles Transnational Holdings Inc is a provider of biopharmaceutical development services and commercial outsourcing services.
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