Evercore ISI Downgrades Quintiles (Q) to Hold

Evercore ISI downgraded Quintiles (NYSE: Q) from Buy to Hold with a price target of $74.00.

Analyst Ross J. Muken said they are positive on the IMS transaction in the longer term, but near term dynamics cause us to downgrade.

Near-term dynamics include:

• Our analysis of ~1,000 M&A deals (>$250 MM) that show value creation typically occurs post 12 months for mergers of equals
• Synergy capture is weighted toward revenue acceleration / tax vs. costs suggesting patience will be needed to see results
• Valuation appears fair as complex mergers tend to trade at or below low end of two relative peer groups
• EPS upside does not appear highly visible until mid-2017 as synergies ramp and new capital allocation approach takes hold

For an analyst ratings summary and ratings history on Quintiles click here. For more ratings news on Quintiles click here.

Shares of Quintiles closed at $67.46 yesterday.

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