In a report released on August 26, Michael Cherny from Leerink Partners reiterated a Buy rating on Quest Diagnostics, with a price target of $192.00.
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Michael Cherny has given his Buy rating due to a combination of factors related to Quest Diagnostics’ strategic initiatives and growth potential. The recent joint venture with Corewell Health is a significant move that aligns with Quest’s strategy to expand its hospital outreach services. This partnership is expected to contribute substantially to revenue, with projections indicating it will be one of the largest revenue-generating deals for the company.
Additionally, the joint venture is anticipated to be accretive to Quest Diagnostics’ growth by the fiscal year 2026, with further contributions expected in 2027. The collaboration involves managing Corewell’s existing hospital labs, which will enhance Quest’s operational footprint. These strategic moves are seen as a prudent use of capital, aimed at delivering increased value and return on investment, which supports the Buy rating.