Labcorp Holdings: Buy Rating Maintained Amid Minimal Impact from FDA’s Animal Testing Phase-Out

J.P. Morgan analyst Lisa Gill has maintained their bullish stance on LH stock, giving a Buy rating on April 11.

Lisa Gill’s rating is based on a combination of factors that suggest the potential impact of the FDA’s plan to phase out animal testing is largely immaterial for Labcorp Holdings in the near term. Although the announcement has created some uncertainty, it is important to note that the Early Development (ED) unit, which could be affected by this change, contributes only a small percentage to Labcorp’s overall revenues and operating income.
Furthermore, the ED unit encompasses a variety of services beyond preclinical research, which reduces its exposure to the changes in animal testing requirements. Additionally, Labcorp’s safety assessment services already include non-animal testing methods, further mitigating potential risks. Given the gradual implementation of the FDA’s plan and the limited immediate impact on Labcorp’s financials, Lisa Gill maintains a Buy rating on the stock, anticipating that the company’s performance will remain strong in the foreseeable future.

In another report released on April 11, Robert W. Baird also maintained a Buy rating on the stock with a $253.00 price target.

Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LH in relation to earlier this year.