Leerink Partners analyst Michael Cherny has reiterated their bullish stance on LH stock, giving a Buy rating yesterday.
Michael Cherny has given his Buy rating due to a combination of factors that indicate a positive outlook for Labcorp Holdings. The company has demonstrated solid underlying volume growth, which is expected to remain within historical ranges despite challenges such as weather and calendar impacts. This stability is further supported by encouraging growth in the ED business, which has shown a strong book-to-bill ratio, providing a level of comfort despite potential future headwinds.
Additionally, Labcorp’s management has shown effective cost management, leading to margin outperformance, and has reiterated guidance that accounts for tariff-driven supply inflation. The company’s strategic moves in hospital outreach M&A and collaboration activities are expected to bolster volume growth and improve margins. With a reasonable valuation and potential upside, especially if the FDA environment becomes clearer, Cherny sees more positives than negatives, supporting his Buy rating and a price target of $285.
Based on the recent corporate insider activity of 76 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.