Leerink Partners analyst Michael Cherny reiterated a Buy rating on Quest Diagnostics (DGX – Research Report) on March 19 and set a price target of $184.00.
Michael Cherny has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ steady growth and resilience. The company’s investor day updates emphasized advancements in diagnostics and strategic investments, reinforcing its progress over the past two years. Although there were some concerns about weather-related impacts on short-term estimates, the long-term guidance remains strong, with a projected 7-9% EPS CAGR.
Quest Diagnostics is expected to benefit from a mix of macroeconomic and microeconomic factors, supporting a 3% long-term organic revenue growth. The company is well-positioned to grow above market expectations by expanding coverage and capitalizing on opportunities in under-penetrated metropolitan areas. Additionally, Quest’s ability to service large national players and address hospital lab pressures further solidifies its durable business model, justifying the Buy rating and maintaining a price target of $184.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $190.00 price target.
Based on the recent corporate insider activity of 98 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DGX in relation to earlier this year.