Labcorp upgraded to Buy from Neutral at Citi

Citi upgraded Labcorp (LH) to Buy from Neutral with a price target of $300, up from $250. Utilization rates have been running high post-pandemic with no signs of slowing down and Labcorp is well positioned to capitalize on that through its core diagnostics business, the analyst tells investors in a research note. The firm says that while the recent Invitae acquisition will enter fiscal 2025 dilutive to margin, there is line of sight to breakeven and even accretion. Further, after multiple quarters of headwinds within Labcorp’s Early Development business, a gradual recovery seems to be materializing which should ease some of the overhang on the stock, contends Citi.