Quest Diagnostics: Balancing Strong Q1 Performance with Moderate Future Growth Outlook

Quest Diagnostics (DGX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Patrick B Donnelly from Citi maintained a Hold rating on the stock and has a $185.00 price target.

Patrick B Donnelly’s rating is based on a combination of factors, including Quest Diagnostics’ recent financial performance and future outlook. The company reported a strong first quarter with organic growth and margin expansion, which was well-received by investors. However, despite these positive results, the management’s guidance for the fiscal year 2025 suggests a moderate growth trajectory, with expectations of around 3% organic growth and a steady margin expansion.
Another factor influencing the Hold rating is the limited visibility on organic volumes, which is typical for the industry, and the gradual nature of changes in volume patterns. While the company has shown resilience against broader market concerns such as geopolitical tariffs, the anticipated growth and margin improvements are relatively modest. Therefore, the Hold rating reflects a balanced view, acknowledging both the strengths and the potential challenges in Quest Diagnostics’ business environment.

According to TipRanks, B Donnelly is a 2-star analyst with an average return of 0.0% and a 43.64% success rate. B Donnelly covers the Healthcare sector, focusing on stocks such as Danaher, Illumina, and Agilent.

In another report released on April 28, Piper Sandler also reiterated a Hold rating on the stock with a $200.00 price target.