Labcorp Holdings: Strong Utilization Trends and Strategic Initiatives Drive Buy Rating

Erin Wright, an analyst from Morgan Stanley, maintained the Buy rating on Labcorp Holdings (LH – Research Report). The associated price target is $270.00.

Erin Wright has given his Buy rating due to a combination of factors that highlight Labcorp Holdings’ potential for growth and stability. One of the primary reasons is the strong utilization trends that Labcorp has been experiencing, which have been resilient despite certain challenges like adverse weather conditions. This indicates a robust demand for their services, which is expected to contribute to a healthy revenue growth projection of 6.7-8.0% by 2025.
Additionally, Labcorp’s strategic initiatives in the diagnostics and biopharma sectors are promising. The company is targeting significant growth in diagnostics, with half of it expected to come from organic sources. The acquisition of Invitae is anticipated to be beneficial in the latter half of 2025, complementing existing offerings. Furthermore, Labcorp’s expansion in oncology and other specialized testing areas, along with favorable regulatory conditions, supports the positive outlook for the company’s future performance.

In another report released on May 21, Mizuho Securities also maintained a Buy rating on the stock with a $274.00 price target.

LH’s price has also changed slightly for the past six months – from $237.390 to $254.370, which is a 7.15% increase.