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On Friday, Mizuho (NYSE:MFG) Securities showed confidence in Quest Diagnostics (NYSE:DGX) by increasing the company’s price target to $178 from the previous target of $177, while reaffirming an Outperform stock rating. The adjustment comes in response to Quest Diagnostics’ robust fourth-quarter performance for the year 2024 and a promising outlook for 2025. The stock, currently trading near its 52-week high of $167.08, has shown strong momentum with a 30.5% return over the past year. InvestingPro data reveals several more key insights about the company’s performance and potential.
The securities firm’s analysis indicates that Quest Diagnostics is expected to continue its positive trajectory, supported by several key factors. Mizuho highlights the company’s high earnings visibility, which is attributed to steady healthcare utilization, market share gains, strategic mergers and acquisitions, and a favorable mix of services. With a market capitalization of $18.4 billion and revenue growth of 6.7% in the last twelve months, Quest Diagnostics has demonstrated its strong market position. InvestingPro analysis shows the company maintains a GOOD financial health score, supported by consistent dividend payments for 22 consecutive years.
In addition to the price target update, Mizuho is maintaining its adjusted earnings per share (EPS) estimates for 2025 and 2026. The firm also introduced its 2027 adjusted EPS target for Quest Diagnostics, which stands at $11.05. This projection further underscores the firm’s expectation of sustained growth for the healthcare diagnostics company.
The analyst’s statement shed light on the rationale behind the maintained Outperform rating: "We believe earnings visibility remains high given solid underlying healthcare utilization, market share gains, M&A, and solid mix. We reiterate our Outperform rating." This sentiment reflects Mizuho’s outlook on the company’s ability to maintain its growth momentum in the coming years.
Quest Diagnostics has established itself as a key player in the healthcare diagnostics sector, and its recent financial results have bolstered the confidence of analysts at Mizuho. Investors seeking detailed information on the company’s fourth-quarter performance can refer to Mizuho’s initial analysis of the Q4 2024 results.
In other recent news, Quest Diagnostics has reported impressive Q4 results, with earnings and revenue surpassing analyst expectations. The firm posted an adjusted earnings per share of $2.23, beating the consensus estimate of $2.19, and a revenue of $2.62 billion, exceeding expectations of $2.58 billion, marking a 14.5% increase year-over-year. Additionally, the company completed eight acquisitions in 2024, including LifeLabs in Canada, contributing to these robust Q4 results.
For the full year 2025, Quest Diagnostics is projecting an 8.4% to 9.9% growth in revenue, forecasting between $10.70 billion and $10.85 billion. Adjusted earnings per share are expected to range from $9.55 to $9.80. Moreover, Quest Diagnostics has increased its quarterly dividend by 6.7%, to $0.80 per share.
In terms of analyst outlook, Jefferies has maintained their Buy rating for Quest Diagnostics and raised their price target to $190, reflecting confidence in the company’s growth prospects. The firm also noted Quest Diagnostics’ resilience against broader healthcare sector threats and found its valuation appealing. These are the recent developments in the company’s financial landscape.
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