Jefferies Cuts Bio-Reference Laboratories to Hold
Jefferies downgraded Bio-Reference Laboratories (BRLI) to hold from buy, noting the stock's valuation.
Analyst Arthur Henderson says he remains bullish on the company's business prospects and there could be modest upside to earnings per share (EPS) in the second half of 2006. Nonetheless, he believes a recent run-up in the stock has left little upside at its current valuation. He notes that the stock surged since its addition to the Investor's Business Daily 100 Top-Rated Stocks in mid-June. He expects the company to build on its strong second quarter financial performance, as well as post improving cash flows in the third and fourth quarters. However, he does not believe this upside will be sufficient to support expansion in the current valuation. He maintains his $22 stock price target.