William Blair analyst Andrew Brackmann has reiterated their bullish stance on LH stock, giving a Buy rating yesterday.
Andrew Brackmann has given his Buy rating due to a combination of factors including Labcorp’s steady performance and positive outlook. Despite a slight miss in revenue expectations due to external factors like weather and decreased COVID-19 vaccine revenue, the company exceeded earnings per share predictions by 3%. Management’s reaffirmation of their full-year revenue guidance and an increase in adjusted EPS outlook further strengthen confidence in the company’s financial health.
Brackmann also highlights Labcorp’s resilience and growth potential across various economic conditions, similar to its peer Quest Diagnostics. Although there are risks associated with Labcorp’s biopharma laboratory services, which are more sensitive to early development and pharma spending, these are already reflected in the stock’s valuation. With shares trading slightly above the 10-year average earnings multiple, Brackmann maintains an Outperform rating, suggesting that Labcorp is a reliable investment choice.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $282.00 price target.