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Investing.com - Laboratory Corporation of America (NYSE:LH), a $22.4 billion healthcare diagnostics leader, received a price target increase from Evercore ISI on Thursday, boosting the stock’s outlook based on strong quarterly performance. The stock is currently trading near its 52-week high at $267.46.
Evercore ISI raised its price target on Laboratory Corporation of America to $300.00 from $285.00 while maintaining an Outperform rating on the stock. The adjustment follows what the research firm described as a "solid" second quarter with strong diagnostic growth from both organic sources and acquisitions. According to InvestingPro data, the company maintains a robust financial health score of 2.82 (GOOD), supported by steady revenue growth of 7.13% over the last twelve months.
The company has raised its revenue guidance for the second half of 2025 by approximately 70 basis points at the midpoint, with foreign exchange effects shifting from a headwind to a tailwind. According to Evercore ISI, the foreign exchange tailwind alone should help fiscal year 2025 earnings per share by approximately 21 cents. InvestingPro analysis reveals that Laboratory Corporation demonstrates remarkably low price volatility and maintains a prominent position in the Healthcare Providers & Services industry. Subscribers can access 8 additional exclusive ProTips and comprehensive financial metrics in the Pro Research Report.
Evercore ISI highlighted several positive factors supporting its more optimistic outlook, including continuing strong utilization trends, market share gains, and robust specialty growth in diagnostics. The firm also noted high growth visibility in the company’s base business, supported by ending backlog and trailing twelve months book-to-bill ratios.
Based on these factors, Evercore ISI has raised its 2025 earnings per share estimate for Laboratory Corporation of America from $16.09 to $16.41, reflecting increased confidence in the company’s near-term performance.
In other recent news, Laboratory Corporation of America 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. This robust performance reflects the company’s strength in its diagnostics business and biopharma laboratory services division. In light of these results, Leerink Partners raised its price target for Labcorp to $323 from $293, maintaining an Outperform rating on the stock. Leerink highlighted the impressive performance during the large-cap pharma services earnings season. These developments underscore Labcorp’s positive trajectory and investor confidence.
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