Quest Diagnostics / Labcorp: Potential -ve Read-through to Labs on Greater ACA Coverage Loss for the Year

研报英文原文证据摘录

Quest Diagnostics / Labcorp: Potential -ve Read-through to Labs on Greater ACA Coverage Loss for the Year

Barclays | Quest Diagnostics / Labcorp

CD: Barclays Bank PLC and/or an affiliate is a market-maker in debt securities issued by Quest Diagnostics.

CE: Barclays Bank PLC and/or an affiliate is a market-maker in equity securities issued by Quest Diagnostics.

J: Barclays Bank PLC and/or an affiliate is a liquidity provider and/or trades regularly in the securities by Quest Diagnostics and/or in any related

derivatives.

Valuation Methodology: Our $230 PT applies a ~21.5x multiple to our FY'26 EPS of $10.78.

Risks which May Impede the Achievement of the Barclays Research Valuation and Price Target: Downside risks include: (1) reimbursement risk,

namely the resumption of annual PAMA cuts, reducing pricing by ~$100M; (2) higher-than-expected turnover or wage inflation putting pressure on

DGX's cost structure; and (3) other regulatory/policy impacts that potentially create enrollment HWs.

Disclaimer:

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(collectively and each individually, "Barclays").

It has been prepared for institutional investors and not for retail investors. It has been distributed by one or more Barclays affiliated legal entities listed

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merchantability or fitness for a particular purpose or use with respect to any data included in this publication.