Labcorp Holdings: Strong Q1 2025 Performance and Positive Outlook Justify Buy Rating

Analyst Michael Ryskin of Bank of America Securities maintained a Buy rating on Labcorp Holdings (LH – Research Report), retaining the price target of $282.00.

Michael Ryskin’s rating is based on Labcorp Holdings’ solid performance in the first quarter of 2025, despite some segments underperforming expectations. The company’s adjusted earnings per share (EPS) exceeded market predictions, indicating strong profitability. Additionally, Labcorp maintained its sales guidance for the year and even raised the midpoint for its adjusted EPS forecast, reflecting confidence in its financial outlook.
Ryskin also noted that the core laboratory trends remain favorable, which supports the Buy rating. The company’s strategic mergers and acquisitions have contributed positively to its growth, and the organic growth in its base business further strengthens its market position. Despite some challenges, such as adverse weather impacts and fewer revenue days, Labcorp’s overall performance and future prospects justify the positive outlook.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LH in relation to earlier this year.