Analysts have modestly raised their price target for Labcorp Holdings from $296.18 to $299.12. They cite solid improvements in projected profit margins, which offset slightly lower top-line growth expectations.
What's in the News
- Updated 2025 guidance: Labcorp lowered its projected revenue growth range to 7.4% to 8.0%, compared to the previous 7.5% to 8.6% range (Key Developments).
- Expanded share repurchase: The company completed the buyback of over 14.3 million shares, representing nearly 16% of its outstanding shares, totaling $3.41 billion since December 2021 (Key Developments).
- Launch of Alzheimer’s diagnostics: Labcorp will offer the Elecsys pTau181 test, cleared by the FDA for initial assessment of Alzheimer’s disease and cognitive decline, making it widely available by early 2026. The test provides a less invasive alternative to traditional methods (Key Developments).
- Clinical collaboration: A partnership with Praia Health resulted in increased patient appointment adherence and digital engagement for lab services at Providence, with notable improvements in scheduling, bill payment, and reduced appointment no-shows (Key Developments).
- Availability of new FDA-cleared test: Labcorp launched the Lumipulse pTau-217/Beta Amyloid 42 Ratio blood test, the first FDA-cleared blood-based IVD for aiding Alzheimer’s diagnosis, now available nationwide (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Increased slightly from $296.18 to $299.12.
- Revenue Growth: Lowered from 5.13% to 4.80%.
- Net Profit Margin: Risen moderately from 8.24% to 8.72%.
- Future P/E Ratio: Declined from 22.62x to 21.34x.
- Discount Rate: Remained unchanged at 6.78%.
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