Quest Diagnostics upgraded to Neutral from Sell at Citi

Citi analyst Patrick Donnelly upgraded Quest Diagnostics to Neutral from Sell with a price target of $142, up from $125. The analyst believes the stock’s valuation appropriately reflects the risk/reward tied to the uncertain base business volume recovery and wage inflation along with possible upside from value-based contracts and pricing. Citi’s Sell thesis was primarily centered on potential downside to core fiscal 2023 earnings guidance, which played out, the analyst tells investors in a research note. In addition, Quest’s "peak multiple" has come down to what a more reasonable level based on the historical range, contends the firm.