Buy Rating on Quest Diagnostics Driven by Strong 2026 Outlook, Margin Expansion, and Growing High-Margin Segments

Morgan Stanley analyst Erin Wright has reiterated their bullish stance on DGX stock, giving a Buy rating today.

Erin Wright has given his Buy rating due to a combination of factors tied to Quest Diagnostics’ stronger‑than‑expected 2026 outlook and solid underlying trends. Management is targeting mid‑single‑digit to high‑single‑digit revenue growth that is mostly organic, outpacing consensus expectations and signaling continued healthy test utilization and market share gains.

At the same time, operating margins are projected to expand even after accounting for transitory headwinds such as adverse weather, higher taxes and incremental Project Nova spending, while the removal of the PAMA reimbursement overhang and eased dilution from Haystack MRD further support earnings power. Wright also highlights the growing contribution from Co‑Lab partnerships and the consumer segment, which are expected to scale and enhance profitability over time, reinforcing her conviction in the stock’s upside potential.

In another report released today, TipRanks – xAI also upgraded the stock to a Buy with a $214.00 price target.