IDEXX Laboratories stock holds steady as Stifel maintains rating

Investing.com - Stifel has reiterated its Hold rating on IDEXX Laboratories (NASDAQ:IDXX) with a price target of $540.00, according to a research note released Thursday. The company, currently trading at a P/E ratio of 51.27x, is scheduled to report its next earnings on August 4.

The decision comes despite IDEXX shares gaining approximately 40% since April, significantly outperforming the S&P’s 13% increase during the same period. Stifel noted this substantial price movement occurred before any meaningful traction from the company’s new product cycle.

Stifel had been monitoring veterinarian adoption of IDEXX’s new offerings, particularly Cancer Dx and inVue Dx, through quarterly surveys conducted in late 2024 and the first half of 2025. With revenue growth at 5.56% and operating with moderate debt levels, the firm indicated it needed to see "overwhelmingly positive" results from this diligence to change its rating given the recent stock performance. InvestingPro subscribers can access 18 additional investment tips and comprehensive analysis for IDXX.

The research firm explained its original plan was to wait until 2025 to evaluate IDEXX’s performance, noting that clinical visits remained modest while the company’s new diagnostic products were just launching.

Stifel drew parallels to its approach with other animal health companies, highlighting how it maintained a Hold rating on Elanco until it approached its product cycle, and recently downgraded Zoetis (NYSE:ZTS) to Hold based on expectations of revenue growth deceleration in 2026/2027 due to increasing competition.

In other recent news, IDEXX Laboratories reported its first-quarter 2025 revenue, which aligned with expectations, while adjusted earnings per share of $2.88 slightly surpassed Stifel’s estimate of $2.85. This performance prompted Stifel to raise its price target for IDEXX to $540, maintaining a Hold rating. Jefferies initiated coverage on IDEXX with a Buy rating and a $625 price target, highlighting the company’s strong position in the veterinary diagnostics market, expected to grow as pets acquired during the pandemic age. Leerink Partners also raised its price target on IDEXX to $580, maintaining an Outperform rating, driven by the successful launch of the InVue Dx diagnostic console. The console is anticipated to be a significant growth driver, generating annual recurring revenue per placement in line with company guidance. Additionally, IDEXX announced the election of former State Street (NYSE:STT) CEO Jay Hooley to its Board of Directors, bringing extensive financial leadership experience. These developments reflect IDEXX’s strategic moves and market potential in the veterinary diagnostics sector.

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