Next 6-12 months crucial for prediction platforms like Kalshi and Polymarkets
Investing.com - Leerink Partners raised its price target on Quest Diagnostics (NYSE:DGX) to $210.00 from $203.00 while maintaining an Outperform rating on the stock. The new target comes as Quest trades near its 52-week high of $191.49, having delivered an impressive 28% return year-to-date. According to InvestingPro analysis, the stock currently appears slightly overvalued based on its Fair Value assessment.
The research firm cited Quest’s third-quarter results as evidence of a favorable environment in the laboratory services sector, noting stable reimbursement and utilization trends. The company’s strong performance is reflected in its 12.6% revenue growth and "GREAT" financial health score, as reported by InvestingPro.
Leerink highlighted that Quest continues to benefit from improving test mix and is seeing growth in its consumer channel, supported by partnerships with consumer health companies including Function Health and WHOOP.
The firm acknowledged potential impacts from PAMA and HIX cuts but stated these are "well understood by investors" and "manageable in nature."
Leerink’s new price target is based on approximately 19.5x calendar year 2026 earnings per share, up from approximately 19.0x previously.
In other recent news, Quest Diagnostics reported its earnings for the third quarter of 2025, surpassing analysts’ forecasts. The company achieved an adjusted earnings per share (EPS) of $2.60, which was above the projected $2.50. Additionally, Quest Diagnostics reported revenues of $2.82 billion, exceeding the expected $2.73 billion. These results indicate a strong performance for the company, reflecting positively on its financial health. No mergers or acquisitions were announced in the recent updates. There were also no reports of analyst upgrades or downgrades for Quest Diagnostics. These developments provide investors with the latest insights into the company’s financial achievements.
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