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Investing.com - Jefferies has raised its price target on IDEXX Laboratories (NASDAQ:IDXX) to $785.00 from $625.00 while maintaining a Buy rating on the stock. The new target comes as IDEXX trades near its 52-week high of $688.12, having delivered an impressive 65% return year-to-date according to InvestingPro data.
The price target increase follows what Jefferies described as "strong" second-quarter results for IDEXX, which showed sales growth of 10.6% and EBITDA growth of 14%. The company maintains robust profitability with a 61.5% gross margin and strong return on equity of 65%.
IDEXX management has also raised guidance for the company, which Jefferies interprets as confirmation that "the innovation playbook is working."
Jefferies noted that IDEXX's decision to accelerate spending in several markets signals confidence in expected returns and supports the high single-digit percentage growth outlook despite challenging macroeconomic conditions.
The firm believes these factors, combined with a predictable growth reacceleration as the pandemic cohort ages, justify a premium valuation for IDEXX Laboratories stock.
In other recent news, IDEXX Laboratories Inc. reported impressive financial results for the second quarter of 2025. The company significantly exceeded earnings and revenue forecasts, posting an earnings per share (EPS) of $3.63, which surpassed the expected $3.29. This marks a 17% increase on a comparable basis. Revenue for the quarter reached $1.11 billion, surpassing the forecast of $1.06 billion. These results highlight IDEXX Laboratories' strong performance and financial health. There were no recent reports of mergers involving the company. Analyst notes and upgrades or downgrades were not mentioned in the recent updates. Investors may find these developments noteworthy as they assess IDEXX Laboratories' market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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