Analyst Michael Cherny of Leerink Partners reiterated a Buy rating on Quest Diagnostics (DGX – Research Report), retaining the price target of $184.00.
Michael Cherny has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ strong growth prospects and stable financial performance. The company is expected to demonstrate consistent growth in its diagnostics platform, driven by a steady increase in volume, price, and mix. This growth is supported by a robust long-term guidance that projects a high single-digit EPS compound annual growth rate, complemented by a dividend yield, which together suggest a promising total return profile.
Furthermore, Quest Diagnostics’ focus on innovation, particularly in molecular genomics and oncology, underscores its technical and scientific capabilities. The oncology segment, a significant revenue driver, is expected to be a focal point at the Investor Day, showcasing the company’s advancements and future potential. These factors, combined with the company’s history of consistent outperformance, reinforce the positive outlook and support the Buy rating.
According to TipRanks, Cherny is a 4-star analyst with an average return of 3.0% and a 50.55% success rate. Cherny covers the Healthcare sector, focusing on stocks such as Walgreens Boots Alliance, Align Tech, and Cencora.