Analyst Tycho Peterson of Jefferies reiterated a Buy rating on Quest Diagnostics, with a price target of $215.00.
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Tycho Peterson has given his Buy rating due to a combination of factors that highlight Quest Diagnostics’ strong financial performance and future growth potential. The company reported a significant increase in sales, reaching $2.8 billion, which represents a 13% year-over-year growth and surpasses market expectations by 3%. Additionally, the earnings per share of $2.60 exceeded forecasts by $0.10, indicating robust profitability.
Quest Diagnostics has also raised its full-year guidance, with organic growth expected to increase by 100 basis points to 4.5-5%, and EPS guidance adjusted upwards by $0.07. The consumer segment has shown impressive growth, contributing to the overall positive outlook. Furthermore, the company’s strategic initiatives, such as the anticipated ramp-up of Haystack MRD in 2026 and partnerships in the direct-to-consumer segment, are expected to drive future momentum. Despite some uncertainties, such as PAMA, the core business remains strong, justifying the Buy rating with a price target of $215.
Peterson covers the Healthcare sector, focusing on stocks such as Agilent, Qiagen, and Bruker. According to TipRanks, Peterson has an average return of 6.3% and a 56.05% success rate on recommended stocks.