Jefferies analyst Tycho Peterson maintained a Buy rating on Quest Diagnostics (DGX – Research Report) yesterday and set a price target of $195.00.
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Tycho Peterson has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ strategic positioning and growth potential. The company is navigating potential reimbursement cuts under the Protecting Access to Medicare Act (PAMA) with a proactive approach. Despite the anticipated $100 million revenue headwind in 2026, Quest Diagnostics is optimistic about industry consolidation and potential market share gains as smaller competitors may struggle in this environment.
Furthermore, Quest Diagnostics is exploring technological advancements, such as adopting Roche SBX and diversifying across multiple systems, which could enhance operational efficiency. The company’s focus on automation and improved patient interfaces, alongside partnerships for at-home blood collection, positions it well for future growth. Additionally, structural growth drivers, such as increased test utilization and a higher number of tests per requisition, are expected to bolster revenue and operating leverage, supporting the Buy rating.
DGX’s price has also changed moderately for the past six months – from $155.690 to $176.980, which is a 13.67% increase.