Leerink Partners maintains IDEXX stock rating on InVue Dx growth potential

Published 26/06/2025, 13:50
Leerink Partners maintains IDEXX stock rating on InVue Dx growth potential

Investing.com - Leerink Partners has reiterated an Outperform rating and $580.00 price target on IDEXX Laboratories (NASDAQ:IDXX), citing the successful launch of the company’s InVue Dx diagnostic console. The stock, currently trading at $530.40 and near its 52-week high of $533.32, has shown strong momentum with a 27% gain over the past six months.

The research firm noted that the InVue Dx launch is "now underway and ramping nicely out of the gate" and represents an important growth driver for 2026 and beyond. Leerink highlighted the console’s ability to generate annual recurring revenue of $3,500 to $5,500 per placement, in line with company guidance. The $42.65 billion market cap company has maintained steady growth, with revenue increasing 5.56% over the last twelve months.

Leerink analysts used IDEXX’s previous SediVue console launch as a comparison point, estimating that InVue Dx recurring revenue could contribute approximately 50 to 70 basis points annually to the company’s Companion Animal Group (CAG) Diagnostics recurring revenue growth over the next several years.

This revenue stream is expected to play a significant role in Leerink’s projected acceleration of CAG Diagnostics recurring growth from approximately 5.2% in 2025 to approximately 8.0% in 2026, according to the research note.

The firm expressed confidence in InVue’s contribution to IDEXX’s growth trajectory as the product scales, despite acknowledging that the launch is still in its early stages. According to InvestingPro, five analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s outlook. For deeper insights into IDEXX’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, IDEXX Laboratories reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $2.96, which exceeded analyst expectations by $0.10. Revenue for the quarter was $998.43 million, slightly below the anticipated $1 billion. The company also updated its full-year EPS guidance to a range of $11.93 to $12.43 per share, reflecting confidence in continued growth. Additionally, IDEXX Laboratories announced a 9% year-over-year growth in its high-margin consumables and software segments, contributing to improvements in gross and operating margins. Analyst firms have shown a positive outlook on IDEXX, with Leerink Partners raising the stock price target to $580.00 and maintaining an Outperform rating, while BTIG increased the target to $545. Both firms highlighted IDEXX’s strong position in the veterinary diagnostics market and its ability to innovate. These developments underscore IDEXX’s strategic focus on innovation and its potential for sustained growth in the animal health sector.

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