Labcorp (LH, Financial) has entered into a definitive agreement to purchase select assets from Community Health Systems' (CHS) ambulatory outreach laboratory services for $195 million in cash. This acquisition will include certain patient service centers and in-office phlebotomy locations across 13 states.
With the completion of this transaction, CHS patients and providers will have enhanced access to Labcorp's extensive testing and laboratory services, which feature specialty testing options, advanced data analytics, and digital tools. Notably, CHS will retain control over its inpatient and emergency department laboratories, continuing to provide necessary hospital-based services.
CHS Executive Vice President, Kevin Stockton, highlighted the alignment of this deal with the company's focus on core services and improving patient care. This strategic move reflects Labcorp's ongoing initiative to partner with local and regional health systems, aiming to elevate service quality for patients and providers.
The acquisition is contingent upon customary closing conditions and regulatory approvals, with an expected closure in the fourth quarter of 2025. Until the transaction is finalized, CHS will maintain its current operations and services.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Labcorp Holdings Inc (LH, Financial) is $279.42 with a high estimate of $300.00 and a low estimate of $248.00. The average target implies an upside of 10.85% from the current price of $252.07. More detailed estimate data can be found on the Labcorp Holdings Inc (LH) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Labcorp Holdings Inc's (LH, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Labcorp Holdings Inc (LH, Financial) in one year is $263.19, suggesting a upside of 4.41% from the current price of $252.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Labcorp Holdings Inc (LH) Summary page.
