Labcorp Holdings Inc. (NYSE: LH) Financial Overview and Analyst Insights
- Labcorp's consensus price target is $275, indicating a positive outlook from analysts with a gradual increase from the previous year's target of $262.43.
- The company reported a significant increase in Q2 2025 revenue to $3.53 billion and an improved diluted EPS of $2.84.
- Analyst Derik de Bruin from Bank of America Securities has set a higher price target of $370 for Labcorp, reflecting confidence in the company's strategic initiatives and market position.
Labcorp Holdings Inc. (NYSE: LH) is a key player in the laboratory services industry, offering a wide range of services to clients such as doctors, hospitals, and pharmaceutical companies. The company is known for its comprehensive testing and laboratory services, which are crucial for healthcare providers and researchers. Labcorp competes with other major players in the industry, including Quest Diagnostics and BioReference Laboratories.
The stock of Labcorp has been closely analyzed by financial experts, who provide target price estimates to guide investors. Recently, the consensus price target for Labcorp was $275, reflecting a positive outlook from analysts. This target remained consistent over the last quarter, indicating sustained confidence in the company's performance and potential. A year ago, the target was $262.43, showing a gradual increase in expectations over time.
Labcorp's recent financial results support this positive sentiment. In the second quarter of 2025, the company reported a significant increase in revenue, rising to $3.53 billion from $3.22 billion in the same period of 2024. Diluted earnings per share (EPS) also improved, reaching $2.84 from $2.43. The adjusted EPS rose to $4.35 from $3.94, highlighting the company's strong financial performance.
In response to these results, Labcorp has raised its full-year guidance. The company now expects revenue growth between 7.5% and 8.6%, with the midpoint increased by 70 basis points. The adjusted EPS guidance has been adjusted to a range of $16.05 to $16.50, with the midpoint increased by $0.23. Additionally, the free cash flow projection is set between $1.13 billion and $1.28 billion, with the midpoint raised by $25 million.
Analyst Derik de Bruin from Bank of America Securities has set a price target of $370 for Labcorp, reflecting confidence in the company's strategic initiatives and market position. This target suggests a potential upside for investors, as Labcorp continues to expand its partnerships and introduce new tests in high-growth specialty areas like oncology. The company's strong track record of surpassing earnings expectations further supports this optimistic outlook.
| Symbol | Price | %chg |
|---|---|---|
| LABS.JK | 142 | 0 |
| 340450.KQ | 8070 | 0 |
| 0R29.L | 449.205 | 0 |
| 205470.KQ | 1367 | 0 |
Labcorp's Promising Market Outlook and Financial Performance
- Labcorp's strategic collaborations aim to enhance clinical trial diversity, potentially boosting its market outlook.
- The company has seen a significant increase in revenue and earnings per share, indicating strong financial health.
- Future projections for 2025 suggest continued growth in revenue and adjusted EPS, underlining Labcorp's growth potential.
Laboratory Corporation of America Holdings (NYSE: LH), commonly known as Labcorp, is a key player in the life sciences industry. The company provides a broad spectrum of diagnostic and drug development services. Labcorp's strategic collaborations, such as with the Tigerlily Foundation, aim to enhance clinical trial diversity, which may contribute to its favorable market outlook.
Over the past year, analysts have shown increased confidence in Labcorp's stock, with the consensus price target rising from $258.86 to $271. This positive shift aligns with the company's strong financial performance. In the fourth quarter of 2024, Labcorp reported a revenue increase to $3.33 billion from $3.03 billion the previous year. For the full year, revenue rose to $13.01 billion from $12.16 billion.
The stability in Labcorp's price target reflects analysts' confidence in its growth prospects. This is supported by the company's significant earnings improvements. In Q4 2024, diluted earnings per share (EPS) improved to $1.70 from a loss of $1.95 the previous year. The full-year diluted EPS also rose to $8.84 from $4.33, indicating strong financial health.
Labcorp's future outlook remains promising, with a 2025 revenue projection between $13.88 billion and $14.05 billion, reflecting a midpoint growth of 7.4%. The adjusted EPS is expected to range from $15.60 to $16.40, with a midpoint growth of 9.8%. This growth potential is further highlighted by Bank of America Securities analyst Derik de Bruin, who set a price target of $370 for Labcorp.
Investors should consider these financial metrics and market conditions when evaluating Labcorp's stock. The company's robust service offerings and strategic initiatives, combined with its strong financial performance, suggest potential for growth and value creation.
Labcorp's Promising Market Outlook and Financial Performance
- Labcorp's strategic collaborations aim to enhance clinical trial diversity, potentially boosting its market outlook.
- The company has seen a significant increase in revenue and earnings per share, indicating strong financial health.
- Future projections for 2025 suggest continued growth in revenue and adjusted EPS, underlining Labcorp's growth potential.
Laboratory Corporation of America Holdings (NYSE: LH), commonly known as Labcorp, is a key player in the life sciences industry. The company provides a broad spectrum of diagnostic and drug development services. Labcorp's strategic collaborations, such as with the Tigerlily Foundation, aim to enhance clinical trial diversity, which may contribute to its favorable market outlook.
Over the past year, analysts have shown increased confidence in Labcorp's stock, with the consensus price target rising from $258.86 to $271. This positive shift aligns with the company's strong financial performance. In the fourth quarter of 2024, Labcorp reported a revenue increase to $3.33 billion from $3.03 billion the previous year. For the full year, revenue rose to $13.01 billion from $12.16 billion.
The stability in Labcorp's price target reflects analysts' confidence in its growth prospects. This is supported by the company's significant earnings improvements. In Q4 2024, diluted earnings per share (EPS) improved to $1.70 from a loss of $1.95 the previous year. The full-year diluted EPS also rose to $8.84 from $4.33, indicating strong financial health.
Labcorp's future outlook remains promising, with a 2025 revenue projection between $13.88 billion and $14.05 billion, reflecting a midpoint growth of 7.4%. The adjusted EPS is expected to range from $15.60 to $16.40, with a midpoint growth of 9.8%. This growth potential is further highlighted by Bank of America Securities analyst Derik de Bruin, who set a price target of $370 for Labcorp.
Investors should consider these financial metrics and market conditions when evaluating Labcorp's stock. The company's robust service offerings and strategic initiatives, combined with its strong financial performance, suggest potential for growth and value creation.
Laboratory Corporation of America Upgraded to Outperform on Strong Growth Outlook
Evercore ISI analysts upgraded Laboratory Corporation of America (NYSE:LH) to Outperform from In Line, raising the price target to $265 from $260. The upgrade reflects optimism about the company’s ability to deliver above-consensus EPS growth in 2025 and beyond, driven by robust base testing demand, margin expansion, and improvements in operations.
LabCorp’s core diagnostics business is expected to sustain 3%-4% organic volume growth even as overall healthcare utilization softens slightly in 2025. Recent data still indicates elevated utilization levels compared to pre-COVID trends, and while some slowdown is anticipated, testing demand is expected to remain solid. The company’s lab volume growth is projected to align with broader healthcare trends but at a steadier pace, given certain procedures, like orthopedics, require minimal lab testing.
Invitae, which posed a $0.37 per share drag in 2024, is anticipated to become slightly accretive in 2025, contributing $0.03 to annual EPS. The turnaround is driven by approximately 10% revenue growth and cost synergies, with the impact becoming EPS-neutral by the second quarter and accretive in the latter half of the year. Additionally, diagnostics margins are expected to expand by about 80 basis points, supported by ~4% core growth at a 35% contribution margin and offsetting approximately $45 million in one-time costs from weather, inflation, and labor expenses.
According to the analysts, LabCorp’s overall EPS growth in 2025 is likely to exceed the company’s long-term target range of 8.5%-11.5%, highlighting its strong operational trajectory.
Laboratory Corporation of America Upgraded to Outperform on Strong Growth Outlook
Evercore ISI analysts upgraded Laboratory Corporation of America (NYSE:LH) to Outperform from In Line, raising the price target to $265 from $260. The upgrade reflects optimism about the company’s ability to deliver above-consensus EPS growth in 2025 and beyond, driven by robust base testing demand, margin expansion, and improvements in operations.
LabCorp’s core diagnostics business is expected to sustain 3%-4% organic volume growth even as overall healthcare utilization softens slightly in 2025. Recent data still indicates elevated utilization levels compared to pre-COVID trends, and while some slowdown is anticipated, testing demand is expected to remain solid. The company’s lab volume growth is projected to align with broader healthcare trends but at a steadier pace, given certain procedures, like orthopedics, require minimal lab testing.
Invitae, which posed a $0.37 per share drag in 2024, is anticipated to become slightly accretive in 2025, contributing $0.03 to annual EPS. The turnaround is driven by approximately 10% revenue growth and cost synergies, with the impact becoming EPS-neutral by the second quarter and accretive in the latter half of the year. Additionally, diagnostics margins are expected to expand by about 80 basis points, supported by ~4% core growth at a 35% contribution margin and offsetting approximately $45 million in one-time costs from weather, inflation, and labor expenses.
According to the analysts, LabCorp’s overall EPS growth in 2025 is likely to exceed the company’s long-term target range of 8.5%-11.5%, highlighting its strong operational trajectory.
