DGX - BofA raises Quest to buy calls it growth at a reasonable price

2023-12-12 12:08:05 ET

BofA has raised its rating on Quest Diagnostics ( NYSE: DGX ) to buy, calling it "growth at a reasonable price."

The investment bank said it had downgraded the stock in May over concerns about the company’s near-term expansion and its acquisition of Haystack Oncology.

BofA said that while it still has issues with the Haystack deal, “Quest’s US focus insulates it from the pharma/China/macro headwinds plaguing our life sciences tools and biopharma services coverage.” It added that Quest’s lab market volume and pricing “seem steady” and that reimbursement cuts associated with the Protecting Access to Medicare Act have been delayed for another year.

The bank set its price objective for Quest at $160.

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