Morgan Stanley analyst Erin Wright has maintained their bullish stance on DGX stock, giving a Buy rating today.
Erin Wright has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ stable long-term growth prospects. The company has reaffirmed its guidance for 2025, despite facing minor setbacks such as a weather-related earnings impact and investments in regulatory compliance and IT projects. Quest Diagnostics projects a revenue compound annual growth rate (CAGR) of 4-5% beyond 2025, driven by organic growth and mergers and acquisitions, along with an expected earnings per share (EPS) CAGR of 7-9%.
Additionally, Erin Wright notes that Quest Diagnostics is well-positioned in the growing US lab market, with strategic initiatives aimed at expanding its market share in both the Physician and Hospital channels. The company is focusing on partnerships with larger enterprise accounts and leveraging its reference testing capabilities to capitalize on favorable macro trends such as workforce shortages and cost pressures in hospitals. These factors contribute to a positive outlook for the company’s long-term operational and financial performance.
Wright covers the Healthcare sector, focusing on stocks such as Zoetis, Quest Diagnostics, and UnitedHealth. According to TipRanks, Wright has an average return of 13.4% and a 64.09% success rate on recommended stocks.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $190.00 price target.