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Quest Diagnostics (DGX): Evaluating Valuation After New Multiple Sclerosis Biomarker Partnership with Octave Bioscience

Simply Wall St · 22h ago

Quest Diagnostics (DGX) just struck a new collaboration with Octave Bioscience, opening its nationwide collection network to Octave’s multiple sclerosis blood test and securing early access rights for future MS and Parkinson’s assays.

See our latest analysis for Quest Diagnostics.

The collaboration lands as Quest’s share price hovers around $184.18, with a solid year to date share price return of 22.01 percent and a 5 year total shareholder return of 61.93 percent, hinting that long term momentum and confidence in its diagnostics growth story remain intact despite a few shorter term wobbles.

If this MS deal has you thinking about where healthcare innovation could head next, it is worth exploring other lab and treatment names through healthcare stocks for fresh ideas beyond Quest.

With shares trading modestly below analyst targets and an intrinsic value gap still implied, are investors overlooking Quest’s expanding neurology pipeline, or is the market already pricing in the full trajectory of its growth?

Most Popular Narrative Narrative: 6.7% Undervalued

Compared with the last close of $184.18, the most followed narrative sees Quest’s fair value sitting modestly higher, framing today’s price as a discount rather than a peak.

The rising importance of health data analytics and Quest's role as a lab engine for consumer wellness brands positions the company to benefit from new revenue streams and further monetization opportunities as healthcare becomes more data driven, supporting long term earnings power.

Read the complete narrative.

Want to see how recurring test demand, richer margins, and a future profit multiple all intersect to justify that higher value? The full narrative lays out the exact growth path analysts are betting on, and the specific profitability shift they think unlocks it.

Result: Fair Value of $197.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent reimbursement pressure and rising wage and automation costs could squeeze margins and challenge the optimistic earnings and valuation path analysts currently expect.

Find out about the key risks to this Quest Diagnostics narrative.

Build Your Own Quest Diagnostics Narrative

If you see Quest’s story differently, or simply want to dive into the numbers yourself, you can build a custom view in minutes: Do it your way

A great starting point for your Quest Diagnostics research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.