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Investing.com - Jefferies has raised its price target on Laboratory Corporation of America (NYSE:LH) to $300.00 from $290.00 while maintaining a Buy rating on the stock. The stock, currently trading at $267.69, has shown impressive momentum with a nearly 10% gain in the past week. According to InvestingPro data, the company maintains a "GOOD" overall financial health score.
The revision follows Laboratory Corporation’s quarterly results, which showed a 1% top-line beat driven by its Base Business segment, which posted a 6% upside. The company’s book-to-bill ratio improved to 1.18 compared to 1.13 in the first quarter.
Laboratory Corporation’s Early Development segment grew 20% due to new starts and favorable year-over-year comparisons. The Diagnostics segment also performed well, growing 9% overall and 4.5% organically.
The company increased its full-year revenue guidance by 70 basis points to reflect foreign exchange impacts, while also raising its earnings per share guidance by $0.23.
Jefferies cited esoteric diagnostics tailwinds, which are outgrowing the market by 3-4 times with favorable mix, and manageable policy headwinds as reasons for maintaining its positive outlook on the stock. Based on InvestingPro’s analysis, the stock appears to be trading above its Fair Value, with 8 additional ProTips available to subscribers in the comprehensive Pro Research Report.
In other recent news, Laboratory Corporation of America reported strong financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $4.35, exceeding the forecasted $4.17. Additionally, Labcorp’s revenue reached $3.53 billion, outpacing the anticipated $3.48 billion. Following these results, Evercore ISI raised its price target for Labcorp to $300.00 from $285.00, maintaining an Outperform rating due to strong diagnostic growth from both organic sources and acquisitions. Similarly, Leerink Partners increased its price target to $323.00 from $293.00, also maintaining an Outperform rating. Leerink highlighted the company’s impressive performance during the large-cap pharma services earnings season, particularly in its diagnostics and biopharma laboratory services divisions. These developments reflect a positive outlook from analysts regarding Labcorp’s recent performance and future potential.
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