Quest Diagnostics, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Ryskin from Bank of America Securities reiterated a Buy rating on the stock and has a $198.00 price target.
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Michael Ryskin has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ strong performance and potential for future growth. The company reported impressive second-quarter results, with sales and adjusted earnings per share exceeding expectations. This growth was driven by a significant increase in revenue through healthcare provider channels, expanded payer access, and contributions from channel partners, despite some offset from lower revenue per requisition from LifeLabs.
Additionally, Quest Diagnostics’ management remains optimistic about navigating policy and regulatory challenges, such as the minimal impact from the One Big Beautiful Bill and the Protecting Access to Medicare Act. The company is also set to benefit from increased volume and utilization, with new client acquisitions and growth in advanced diagnostic testing. These factors, combined with a positive market reaction to their strong quarterly performance, support the Buy rating as the core business is expected to continue countering potential headwinds.