Idexx Laboratories (IDXX) has received a new Hold rating, initiated by UBS analyst, Andrea Alfonso.
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Andrea Alfonso has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Idexx Laboratories. The company’s leadership position in a high-growth sector is supported by consistent new customer growth, particularly through its strong US commercial presence. However, the reliance on price increases to drive revenue growth is a concern, as the frequency of veterinary visits in the US has been declining, which could pressure future revenue targets.
Moreover, while the introduction of new products like the inVue analyzer shows potential, with an expected contribution to growth, adoption rates appear mixed. The demographic shift with pandemic-era puppies reaching maturity by 2027 presents a future opportunity, but its impact is not immediate. Alfonso’s projections for revenue and earnings growth are slightly below consensus estimates, and the current valuation seems to balance the macroeconomic uncertainties with the company’s promising pipeline, justifying a Hold rating.