LH - Laboratory Corporation: Limited Upside Visibility Reiterate Hold
2024-06-21 11:16:16 ET
Summary
- Labcorp's recent acquisition of assets from Invitae could add ~$275-300 million in annualized specialty testing revenue.
- Q1 FY 2024 showed revenue growth despite a decline in COVID testing revenue, with adjusted EPS increasing by 7%.
- Despite this, the reinvestment opportunities to redeploy capital at an advantage appear limited, and valuations rest on multiple expansions at this point.
Investment Summary
Since my last publication on Laboratory Corporation of America Holdings ( LH ) shares have drifted around 5% to the downside. Investors have subsequently repriced the stock back to its November 2023 range. I first downgraded LH to a hold from a buy in April 2023....
Laboratory Corporation: Limited Upside Visibility, Reiterate Hold