Analyst Insights: Illumina, AT&T, SXC Health Solutions, Quest Diagnostics, Knology April 18th

AT&T, Inc. (NYSE:T): Jefferies believes Verizon’s (NYSE:VZ) announced plans to sell all of its 700 MHz wireless spectrum licenses is surprising an an indication of how important the cable deal is to the company. Jefferies thinks AT&T (NYSE:T) could be a major buyer of the Verizon spectrum, adding MetroPCS (NYSE:PCS) could also be a buyer. Further, the move by Verizon could delay Clearwire’s (NASDAQ:CLWR) spectrum sale, Jefferies believes.

Illumina Inc. (NASDAQ:ILMN): Morgan Stanley believes Roche’s (RHBBY) interest in Illumina (NASDAQ:ILMN) remains strong and that it is not really gone from the picture.

SXC Health Solutions, Corp. (NASDAQ:SXCI): Maxim recommends buying shares of SXC Health Solutions (NASDAQ:SXCI) after the company acquired Catalyst Health (NASDAQ:CHSI). The firm believes the pending deal significantly expands SXC’s middle-market footprint and broadens its target client base. Maxim has a $94 price target for SXC Health shares.

Quest Diagnostics Inc. (NYSE:DGX): After Quest Diagnostics reported Q1 revenue and EPS that beat consensus, Leerink attributed the pullback in shares to the company’s cautious outlook, soft revenue guidance, and increased expenses. The firm said it thinks the company’s revenue guidance is very conservative but maintained its Market Perform rating on shares based on valuation.

Knology, Inc. (NASDAQ:KNOL): BWS Financial expects Knology will not receive a higher takeover offer and that the deal with WOW! will close in due course. The firm recommends selling shares of Knology following the acquisition announcement.

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