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Investing.com - Truist Securities has raised its price target on Quest Diagnostics (NYSE:DGX) to $205.00 from $195.00 while maintaining a Hold rating on the stock. The stock, currently trading near its 52-week high of $191.49, has delivered an impressive 28% return year-to-date. According to InvestingPro analysis, Quest Diagnostics appears to be trading above its Fair Value.
The price target increase follows Quest Diagnostics’ third-quarter results, which exceeded both Truist’s and consensus expectations for top and bottom lines. The company also raised its fiscal year 2025 guidance. With a market capitalization of $20.5 billion and robust revenue growth of 12.6% in the last twelve months, Quest Diagnostics has maintained dividend payments for 22 consecutive years, currently yielding 1.7%.
Quest reported strong core trends with organic volumes performing better than anticipated, improved revenue per requisition, and continued growth in tests per requisition, leading to an increase in its organic revenue guidance.
Truist noted that it expects continued strong growth in Advanced Diagnostics, attractive tailwinds from mergers, acquisitions, and partnership activity, as well as ongoing benefits from automation, technology, artificial intelligence, and efforts related to Project Nova.
The company’s cash flow exceeded expectations, with guidance benefiting from some one-time advantages, according to Truist’s analysis.
In other recent news, Quest Diagnostics reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $2.60, which was higher than the projected $2.50, and reported revenues of $2.82 billion, exceeding the anticipated $2.73 billion. These results suggest a favorable environment in the laboratory services sector, as noted by Leerink Partners. Additionally, Leerink Partners raised its price target for Quest Diagnostics from $203 to $210, while maintaining an Outperform rating. This adjustment reflects the firm’s positive outlook on the company’s performance. These developments highlight Quest Diagnostics’ strong financial results and the confidence of analysts in the company’s future prospects.
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