Quest upped to buy by Barclays

Barclays analyst Jack Meehan upgraded Quest Diagnostics (DGX) to Overweight from Equal Weight and raised his price target to $130 from $120, telling investors in a research note that Quest has a “very favorable” risk-reward profile and current levels. Meehan contends that it “could be a big deal” that UnitedHealth (UNH) will share savings with preferred labs as volume shifts from high-cost settings, a first for the lab industry, and that his primary care physician survey indicates that both Quest and LabCorb (LH) should gain share as payor networks open. Additionally, Meehan says the “pieces are in place” for Quest to more meaningfully leverage its diagnostic data asset with customers. Commenting further on Top Pick LabCorp, Meehan believes industry themes that bode well for Quest also bode well for LabCorp.
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