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Investing.com - Leerink Partners has raised its price target on Laboratory Corporation of America (NYSE:LH) to $323.00 from $293.00 while maintaining an Outperform rating on the stock. The stock, currently trading at $267.46, has shown strong momentum with a 21% return over the past year and is currently trading near its 52-week high, according to InvestingPro data.
The price target increase follows what Leerink described as "an impressive large-cap pharma services earnings season" for Labcorp, with strength demonstrated across its diagnostics business and biopharma laboratory services (BLS) division. This performance is reflected in the company’s solid 7.13% revenue growth and robust financial health score of GOOD on InvestingPro, which offers 8 additional key insights about the company’s performance.
Leerink identified several durable factors contributing to Labcorp’s performance, including tests per accession, specialty testing, and increased clinical trial and drug discovery activity, which bolstered the firm’s confidence in LH’s fundamentals through the second half of the year and into 2026.
The research firm acknowledged potential headwinds facing Labcorp, including PAMA, Medicaid, and HIX, but characterized these challenges as either immaterial or transitory, and unlikely to derail the company’s key growth drivers.
Leerink’s new price target is based on approximately 18.0x CY26E EPS, up from 16.5x previously, which the firm noted is in line with its target multiple for Quest Diagnostics (NYSE:DGX) given similar or better reported organic growth and improvement within Labcorp’s BLS segment.
In other recent news, Labcorp Holdings Inc. reported strong financial results for the second quarter of 2025. The company exceeded analysts’ expectations with an adjusted earnings per share (EPS) of $4.35, surpassing the forecasted $4.17. Labcorp also outperformed revenue projections, recording $3.53 billion compared to the anticipated $3.48 billion. These results reflect a positive performance for the company. The earnings announcement has been a significant development for Labcorp, drawing attention from investors. While the stock’s movement post-announcement isn’t covered here, the financial metrics indicate a robust quarter for the company. Investors and analysts will likely be watching Labcorp closely following these results.
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