Friday, July 19, 2024

Quest Diagnostics to Buy, Raises Price Target to $155


Quest Diagnostics Upgraded to Buy, Price Target Raised to $155

Quest Diagnostics (NYSE:DGX) received a notable upgrade on Wednesday when a Jefferies analyst elevated the company’s stock rating from Hold to Buy. Along with this upgrade, the price target saw an upward revision to $155.00, marking a significant increase from its previous $140.00 target.

The adjustment comes on the heels of the analyst’s optimistic outlook regarding the management’s fiscal year 2024 guidance, which is believed to be on the conservative side. This cautious approach may pave the way for Quest Diagnostics to outperform expectations.

According to the analysis, the current market valuation of Quest Diagnostics incorporates a certain level of investor skepticism. However, the analyst strongly believes in the potential for robust organic volume growth and the positive impact of mergers and acquisitions on the company’s earnings per share (EPS) within the current year. Furthermore, it is anticipated that EPS growth will stabilize at a high single-digit percentage from 2025 onwards.

Should Quest Diagnostics continue on its path of meeting or surpassing EPS targets, it is expected that the company’s stock multiple will realign with its historical average. This development reflects a growing confidence in the financial trajectory and market positioning of Quest Diagnostics moving forward.

Jordan Clark
Jordan Clark
Jordan Clark brings a dynamic and investigative approach to business reporting. Holding a degree in Business Administration and a certification in Data Analysis, Jordan has an eye for detail and a knack for uncovering the stories behind the numbers. His career began in the bustling world of Silicon Valley startups, giving him firsthand experience in tech entrepreneurship and venture capital. Jordan's reports often focus on technology's impact on business, startup culture, and emerging

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