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Fly News Breaks for March 18, 2019
DGX
Mar 18, 2019 | 08:41 EDT
Credit Suisse analyst Erin Wilson Wright assumed coverage of Quest Diagnostics with a Neutral rating and a $91 price target. Despite multiple unexpected headwinds affecting its 2018, including greater denials and higher-than-expected patient concessions, among other factors, the analyst is optimistic that long-term growth drivers are intact, including greater in-network access, continuing innovation, consumer-centric initiatives, and capital deployment, where reimbursement pressures and recent payer contract shifts will likely spur industry consolidation. These drivers should support 3%-5% top-line growth and 4%-6% earnings growth long term, dynamics that she views as adequately reflected in the consensus and her expectations, limiting more meaningful upside near-term.
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