Labcorp Rolls Out Digital Health Platform; Street Says Buy

Global life sciences company Laboratory Corporation of America Holdings (NYSE: LH), popularly known as Labcorp, recently announced the launch of its digital health platform, Labcorp OnDemand, for the convenience of its customers.

Following the news, shares of the company declined marginally to close at $277.48 on Friday.

Strategic Impact

With the launch of the platform, Labcorp customers will be able to get services like Labcorp OnDemand tests, collection of samples, and scheduling of tests, including wellness, allergy, COVID-19, women’s health and fertility, within the confines of their homes.

Further, the company is likely to make additional Labcorp OnDemand test kit options available through physicians, health plans, and employers using their existing ordering channels later this year.

Management Commentary

The Chief Marketing Officer of Labcorp, Amy Summy, said, “Labcorp OnDemand makes it easier for individuals to access our leading diagnostic tests online. The OnDemand platform is an intuitive experience where individuals can purchase tests online and choose from multiple options to take the test, including in the comfort of their own home. The platform, in addition to our leading Ovia Health digital apps, offers consumers market-leading solutions, backed by over 50 years of science and innovation, to make confident health decisions.”

Price Target

Recently, Deutsche Bank analyst Pito Chickering downgraded the stock to a Hold from Buy with a price target of $294, which implies upside potential of 6% from current levels.

However, the consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average Labcorp stock prediction of $348 implies upside potential of 25.4% from current levels. Shares have gained 22.8% over the past year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on LH. Further, 4.7% of portfolios tracked by TipRanks, increased their exposure to LH stock over the past 30 days.

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