Analyst Michael Cherny from Leerink Partners reiterated 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’ robust performance and future growth potential. The company has demonstrated strong volume growth, which has led to an overall beat in expectations. This growth is driven by increased test requisitions and a positive outlook on macroeconomic changes, particularly in Medicaid and HIX volumes, which management has addressed confidently.
Additionally, Quest Diagnostics has shown significant expansion in its enterprise accounts and physician channels, with notable growth in advanced diagnostics areas such as cardio and brain health. The company’s strategic partnerships and increased access, as evidenced by collaborations with Elevance and Sentara, further bolster its growth trajectory. The management’s guidance reflects continued strong utilization and organic growth, supported by stable contracts with suppliers, which minimizes volatility. These factors collectively justify the Buy rating and the optimistic price target set by Cherny.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $207.00 price target.