LabCorp a Good Value at $66

Our Dallas presenter highlights LabCorp's (NYSE:LH) excellent cash flow characteristics and steady if unspectacular growth in top-line. The company's nationwide lab network gives it a clear scale advantage compared to small regional players. As the move to preventative care and personalized medicine gathers pace, LH is very well-positioned to grow its operations. Specialized testing, where prices are a level above regular diagnostics, already comprises over a third of the company's total value and that ratio is poised to increase going forward. Margins are impressive, but recently implemented automation initiatives will further boost LabCorp's bottom line. The presenter's target range is $85-$90, based on historical EBITDA multiples.