Quest Diagnostics (DGX) Stock Forecast & Price Target

Quest Diagnostics demonstrated robust financial performance, with total revenue reaching $2.82 billion and growing 13.1% year-over-year, surpassing both analyst expectations and previous consensus estimates. The company experienced significant growth in its physician channel, with revenues up approximately 20% and organic growth in high single digits, reflecting strong demand and expanded health plan coverage. Additionally, the direct channel for consumer-initiated testing surged by 30% to 40% year-to-date, showcasing the effectiveness of new strategic agreements and underscoring the overall positive momentum in advanced diagnostics.

Quest Diagnostics faces significant challenges, as indicated by a revenue per requisition decline of 0.4%, falling short of expectations. The potential implementation of the Protecting Access to Medicare Act (PAMA) poses an estimated $100 million headwind, with management viewing its resolution as uncertain. Additionally, despite organic revenue per requisition growth of 3.3%, the overall financial outlook remains pressured by external factors, including competitive acquisitions and reimbursement consistency.