Canaccord Genuity analyst Mark Massaro maintained a Buy rating on Quest Diagnostics Inc (DGX) yesterday and set a price target of $97. The company’s shares closed on Friday at $87.81.
Massaro commented:
“We have written before that large labs (LH, DGX) and most of the rest of the non- specialized lab industry will face major challenges in 2019 and beyond. That said, we believe Quest is better positioned than LabCorp as Quest is a share gainer related to the UNH contract. DGX indicated that its UNH volumes build each week, and we expect DGX will drive 2-3 points of to offset the ~260bps headwind related to reimbursement. We think the 2019 bar is set appropriately and DGX likely can recover more in 2H/19. DGX is paying a 2.4% dividend yield. We maintain our BUY, trim our estimates and our PT to $97, which uses a 14.4x multiple on our ’20 Adj. EPS of $6.75. Q4/18 results. Adj. EPS of $1.36 (-3% Y/Y%) matched our/Street’s ~$1.36, while revs of $1,839M (-1.4% Y/Y) missed our/Street’s ~$1,878M (+0.7%). Rev./req.”
According to TipRanks.com, Massaro is a 5-star analyst with an average return of 16.3% and a 57.3% success rate. Massaro covers the Healthcare sector, focusing on stocks such as Meridian Bioscience Inc, Quanterix Corporation, and Orasure Technologies.
Quest Diagnostics Inc has an analyst consensus of Moderate Buy, with a price target consensus of $97, a 10.5% upside from current levels. In a report issued on February 14, Credit Suisse also maintained a Buy rating on the stock with a $103 price target.
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Quest Diagnostics Inc’s market cap is currently $11.94B and has a P/E ratio of 14.17. The company has a Price to Book ratio of 2.25.
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Quest Diagnostics, Inc. engages in the provision fo diagnostic testing, information and services. It operates through the Diagnostic Information Services (DIS) and All Other segments. The DIS segment offers diagnostic information services to patients, clinicians, hospitals, health plans, and employers.
