Quest Diagnostics (DGX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 23. Analyst Erin Wright from Morgan Stanley maintained a Buy rating on the stock and has a $182.00 price target.
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Erin Wright has given his Buy rating due to a combination of factors including Quest Diagnostics’ strong growth prospects and strategic initiatives. The company anticipates significant revenue and earnings growth by 2025, driven by improved utilization rates and innovations in diagnostic testing. Quest Diagnostics is also making progress with its Haystack MRD test, which is expected to become accretive by 2026, enhancing its long-term financial outlook.
Additionally, the company’s recent acquisition of LifeLabs is on track to achieve corporate margin targets within the next few years, supported by procurement scale and consolidation of reference testing. Despite potential policy changes, such as those related to PAMA, Quest Diagnostics is optimistic about managing these challenges effectively. The company is also benefiting from strong consumer demand and advancements in healthcare analytics and life sciences, which are expected to contribute to its growth trajectory.
Wright covers the Healthcare sector, focusing on stocks such as Quest Diagnostics, DENTSPLY SIRONA, and Humana. According to TipRanks, Wright has an average return of 12.8% and a 63.46% success rate on recommended stocks.