Zacks Reiterates “Neutral” Rating for Covance (CVD)
Covance (NYSE:CVD)‘s stock had its “neutral” rating reaffirmed by Zacks in a report issued on Friday. They currently have a $88.00 price target on the stock. Zacks‘s price objective points to a potential upside of 4.56% from the company’s current price.
Zacks’ analyst wrote, “Covance reported a decent second-quarter 2014, with adjusted EPS of $0.95, which was up 21.8% year over year and ahead of the Zacks Consensus Estimate by $0.02. Revenues were up 8% at $639.5 million, inline with the Zacks Consensus Estimate. Despite increased spending on strategic IT projects, Late-Stage Development continues to grow strongly on the back of better-than-estimated kit volumes in central laboratories and strong performance of Phase II-IV clinical development services. Moreover, after several quarters of drag, Early Development started showing signs of recovery with improvement in clinical pharmacology and toxicology. Although capital spending environment and competitive landscape remain as overhangs, we believe Covance is positioned well to drive growth in the coming quarters. However, the expiry of Sanofi deal in 2015 is a major concern. Currently, we are Neutral on the stock.”
Covance (NYSE:CVD) traded down 0.01% on Friday, hitting $84.15. 165,147 shares of the company’s stock traded hands. Covance has a 1-year low of $79.21 and a 1-year high of $106.50. The stock’s 50-day moving average is $85.60 and its 200-day moving average is $91.90. The company has a market cap of $4.757 billion and a price-to-earnings ratio of 30.74.
Covance (NYSE:CVD) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $0.95 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.93 by $0.02. The company had revenue of $687.10 million for the quarter, compared to the consensus estimate of $639.80 million. During the same quarter last year, the company posted $0.78 earnings per share. Covance’s revenue was up 6.7% compared to the same quarter last year. Analysts expect that Covance will post $3.86 EPS for the current fiscal year.
A number of other firms have also recently commented on CVD. Analysts at Credit Suisse reiterated an “outperform” rating on shares of Covance in a research note on Monday, August 4th. They now have a $97.00 price target on the stock, down previously from $100.00. Separately, analysts at JPMorgan Chase & Co. reiterated an “overweight” rating on shares of Covance in a research note on Thursday, July 31st. They now have a $100.00 price target on the stock, up previously from $96.00. Finally, analysts at SunTrust reiterated a “neutral” rating on shares of Covance in a research note on Thursday, July 31st. They now have a $90.00 price target on the stock, up previously from $89.00. Six equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $92.96.
Covance Inc is a drug development services company providing a range of early-stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical, biotechnology and medical device industries.
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