BioEquity issues a Technical Breakout Alert on BRLI and raises price target to $45

BRLI break out
BRLI break out

BioEquity today announces a Technical Breakout Alert in Bio-Reference Laboratories, Inc. ( NASDAQ : BRLI )

Technical Breakout Alert: Bio-Reference Laboratories ( NASDAQ : BRLI ) has some bullish indicators setting up in its stock chart. After making all time new high in early October, it pulled back to 200MA in mid-November. BioEquity initiated coverage on BRLI at that time. During last three month or so, BRLI has formed a cup-with-a-long-handle pattern. $30 level has been approached 6 times since August and especially recently. It is a major resistance level.

Today, Bio-Reference Laboratories ( NASDAQ : BRLI ) gaped up and broke above the resistance level in 2X average volume. Its diagnostic industry group peers ( NYSE: LH; NYSE: DGX ) also show strong price and volume actions. BioEquity here issues a Technical Breakout Alert on BRLI with a buy point of $30.10. The little gap might be filled in the near future. If so, filling the gap and retesting $30 level would provide another entry opportunity.

Update 01.23.2013: Gap filled today (the following day).

BE raises BRLI price target to $45: Give strong organic growth in Q4 despite the hit of Hurricane Sandy, we believe that BRLI will continue to outperform its larger peers and harness the growth in healthcare sector brought by ObamaCare. We maintain our trailing PE target of 30X and raise price target to $45 (PE30 x EPS1.5)

Q4FY2012 Press Release said, “The Company recorded Q4FY12 revenues of $176,052, the strongest quarterly revenues in corporate history (despite Management’s estimate that revenues were diminished by more than $5,000 due to the effects of the hurricane in the quarter)”.

About BioReference Laboratories, Inc.

BRLI is a clinical testing laboratory offering testing, information and related services to physician offices, clinics, hospitals, employers and governmental units. We believe that we are the fourth largest full-service laboratory in the United States and the largest independent regional laboratory in the Northeastern market. BRLI offers a comprehensive list of laboratory testing services utilized by healthcare providers in the detection, diagnosis, evaluation, monitoring and treatment of diseases. BRLI primarily focuses on esoteric testing, molecular diagnostics, anatomical pathology, women’s health and correctional health care.

Disclosure: BioEquity.org is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. Investors should always conduct their own due diligence with any potential investment.