IDEXX Laboratories stock price target raised by Stifel to $540 on modest growth

Published 02/07/2025, 12:56
IDEXX Laboratories stock price target raised by Stifel to $540 on modest growth

Investing.com - Stifel has increased its price target on IDEXX Laboratories (NASDAQ:IDXX) to $540.00 from $510.00 while maintaining a Hold rating on the stock. Currently trading at $542.65, IDEXX is approaching its 52-week high of $546.39, with a market capitalization of $43.6 billion. According to InvestingPro, the company maintains a "GREAT" overall financial health score.

The research firm noted that IDEXX’s first-quarter 2025 revenue was essentially in-line with expectations, while adjusted earnings per share of $2.88 modestly exceeded Stifel’s estimate of $2.85, which helped drive a 10%+ rally in the stock. The company’s strong performance is reflected in its impressive 32.7% price return over the past six months.

For the second quarter of 2025, Stifel projects Companion Animal Group (CAG) diagnostic recurring revenue growth of 6.0%, slightly above the Street’s estimate of 5.7%, and believes in-line revenue could again lead to modest earnings upside.

The firm also highlighted that IDEXX conservatively marked the USD/Euro exchange rate at 1.08, providing additional flexibility for earnings performance in the quarter.

Despite the positive outlook, Stifel maintained its Hold rating, citing IDEXX’s elevated valuation following its recent rally, with the stock now trading at 41.6x next-twelve-months earnings compared to 33.8x three months ago, and expressing the need for greater conviction that new product cycles can accelerate IDEXX’s growth rate to justify the premium.

In other recent news, IDEXX Laboratories reported its first-quarter 2025 earnings, which surpassed analyst expectations with an earnings per share (EPS) of $2.96, beating the forecast of $2.86. Revenue for the quarter was $998.43 million, slightly below the anticipated $1 billion. Jefferies initiated coverage on IDEXX Laboratories with a Buy rating and a $625.00 price target, highlighting the company’s leadership in veterinary diagnostics. Leerink Partners maintained an Outperform rating on the stock and raised its price target to $580.00, citing the successful launch of the InVue Dx diagnostic console as a key growth driver. BTIG also increased its price target for IDEXX to $545, noting a 9% year-over-year growth in high-margin consumables and software segments. IDEXX’s gross and operating margins improved, with gross margins at 62.4% and operating margins at 31.7%. The company updated its revenue and EPS guidance for 2025, reflecting confidence in its growth trajectory despite macroeconomic pressures. Analysts from Jefferies and Leerink Partners expressed optimism about IDEXX’s future growth, driven by product innovations and a stable pet population.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.