Analyst Michael Cherny from Leerink Partners maintained a Buy rating on Quest Diagnostics and keeping the price target at $192.00.
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Michael Cherny has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ strong growth prospects and operational efficiency. The company’s management has demonstrated a robust ability to maintain a steady earnings growth trajectory, even amidst some identifiable challenges. This confidence is bolstered by a recent strong quarterly performance and a favorable market environment that supports continued growth.
Quest Diagnostics is expected to achieve approximately 3% revenue growth driven by both increased test volumes and a higher number of tests per requisition. The company is strategically focusing on high-growth areas such as oncology and women’s health, while also expanding its wellness testing offerings through partnerships. Additionally, Quest Diagnostics has a proven track record of cost management, which is crucial for mitigating potential financial pressures. Their long-term cost reduction initiatives are expected to continue supporting the bottom line, further justifying the Buy rating.