Quest Diagnostics upgraded to neutral at Citi on current valuation
Apr. 03, 2023 3:11 PM ETQuest Diagnostics Incorporated (DGX), EXASBy: Jonathan Block, SA News Editor
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- Citi has upgraded Quest Diagnostics (NYSE:DGX) to neutral from buy saying that its current valuation accurately reflects its risk and reward.
- The firm also upped its price target to $142 from $125 (~1% upside based on Friday's close).
- Analyst Patrick Donnelly wrote that while an uncertain base business volume recovery and wage inflation were weighing on the stock, there is potential upside from value-based contracts, pricing, and Protecting Access to Medicare Act and CMS draw fees.
- He added that his preferred name in the diagnostics space is Exact Sciences (NASDAQ:EXAS).
- Read why Seeking Alpha contributor Ryan Licwinto recently issued a buy rating for Quest Diagnostics (DGX).