Quest Diagnostics (DGX) Stock: $175 Price Target From Citi

By Amit Chowdhry ● Apr 9, 2022
  • The shares of Quest Diagnostics Inc (NYSE: DGX) have received a $175 price target from Citi. These are the details.

The shares of Quest Diagnostics Inc (NYSE: DGX) have received a $175 price target from Citi. And Citi analyst Ralph Giacobbe adjusted the rating on Quest Diagnostics from a “Buy” rating to a “Neutral” rating while increasing the price target from $140.

Giacobbe had adjusted the rating after citing an uncertain model post-COVID.

“We are downgrading DGX to Neutral due primarily to concerns around the margin outlook in 2022 and 2023 on the heels of higher internal investments, heightened labor pressures, and potential for reimbursement cuts as the COVID PHE (Public Health Emergency) gradually rolls off along with concurrent volume declines,” wrote Giacobbe in a research note. “We believe it will take more than a year for the internal investments in Advanced Diagnostics and the buildout of the direct-to-consumer (DTC) platform to increase base business sales meaningfully as DGX transitions to a COVID-endemic world. We lower our TP to $140 as we increase our focus on the base business trajectory (revenue and margins) ex-COVID in 2023.”

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