Barclays Maintains Overweight on Quest Diagnostics, Raises Price Target to $260
Barclays analyst Luke Sergott maintains Quest Diagnostics (NYSE:DGX) with a Overweight and raises the price target from $250 to $260.
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Barclays analyst Luke Sergott maintains Quest Diagnostics (NYSE:DGX) with a Overweight and raises the price target from $250 to $260.
The global paternity and relationship testing market is expanding beyond traditional paternity testing into broader applications including maternity, grandparent, sibling, and infidelity testing. The market is projected to grow from $1.08 billion in 2025 to $1.45 billion by 2030 at a CAGR of 6.1%. Growth is driven by increased direct-to-consumer genetic testing accessibility, cultural shifts in family definitions, and demand for legally recognized testing. However, the market faces challenges from increased competition, lower pricing, and regulatory complexity across jurisdictions.
Quest Diagnostics (DGX) is experiencing growth across physician, hospital, and consumer channels, driven by customer wins and an expanding advanced diagnostics portfolio delivering double-digit growth. The company targets 3% annual cost savings through AI and automation initiatives. However, reimbursement uncertainty, cost pressures, and elevated debt of $5.63 billion remain concerns that could impact margins and financial flexibility.