Analyst Michael Cherny of Leerink Partners reiterated a Buy rating on Quest Diagnostics (DGX – Research Report), boosting the price target to $189.00.
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Michael Cherny has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ strong position and growth potential. The company’s recent quarter demonstrated steady organic growth and margin expansion, which boosts confidence in its near-term performance. Despite concerns about tariff exposure, the minimal impact from China and effective mitigation strategies have alleviated potential headwinds. This positions Quest Diagnostics as a reliable investment amidst an uncertain economic environment.
Additionally, the durability of Quest’s lab business was evident, with organic lab volumes accelerating and continued growth in advanced diagnostics. These factors, along with a promising M&A pipeline and further EBIT margin expansion, contribute to a robust EPS growth story. The positive stock performance, exceeding expectations, underscores the visibility of earnings and supports the decision to raise the 12-month price target to $189.
Cherny covers the Healthcare sector, focusing on stocks such as Walgreens Boots Alliance, Quest Diagnostics, and Align Tech. According to TipRanks, Cherny has an average return of 2.6% and a 50.36% success rate on recommended stocks.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $194.00 price target.