In a report released today, Erin Wright from Morgan Stanley maintained a Buy rating on Labcorp Holdings, with a price target of $306.00.
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Erin Wright has given his Buy rating due to a combination of factors that highlight Labcorp Holdings’ strong future prospects. The company has raised its 2025 earnings per share guidance, driven by both operational strength and favorable foreign exchange impacts. A significant portion of this increase is attributed to sustained high utilization levels, which are expected to continue into the second half of the year, providing stability in a volatile healthcare services environment.
Additionally, Labcorp’s diagnostics division is showing promising growth, with a balanced mix of organic and inorganic expansion. The company has increased its topline target for 2025, supported by new acquisitions and partnerships, such as the agreement with Community Health System, which is anticipated to be accretive in its first year. Furthermore, the introduction of new tests in key specialty areas is contributing to growth, and the focus on operating margin expansion remains a priority, despite some short-term challenges. Overall, these factors contribute to a positive outlook for Labcorp Holdings, justifying the Buy rating.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $300.00 price target.