Quest Diagnostics Gains Momentum: Analyst Highlights Strong Business Trends And Growth Opportunities
Portfolio Pulse from Nabaparna Bhattacharya
Truist Securities analyst David S. MacDonald maintained a Hold rating on Quest Diagnostics (NYSE:DGX) but raised the price target from $145 to $150. The increase reflects strong base business trends, growth opportunities, cost/efficiency initiatives, and potential M&A and partnerships. Despite labor challenges, the company is experiencing core growth, improved pricing, and solid free cash flow (FCF) generation. MacDonald expects margin expansion from 2023 to 2026 and ongoing productivity improvements. He also raised the 2024 EPS estimate to $8.98 while keeping the 2025 estimate at $9.58. DGX shares dropped by 0.81% to $135.35.
December 20, 2023 | 7:14 pm
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POSITIVE IMPACT
Quest Diagnostics' price target was raised to $150 by Truist Securities due to strong business trends and growth opportunities. The analyst expects margin expansion and has raised the 2024 EPS estimate, indicating a positive outlook despite a current slight decline in stock price.
The increase in the price target by an analyst typically signals confidence in the company's future performance, which can be a positive indicator for investors. The raised EPS estimate for 2024 also suggests improved profitability. However, the stock's slight decline on the last check indicates that the market may have already priced in some of this optimism or there are other factors at play tempering the stock's short-term performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100