Evercore ISI analysts upgraded Laboratory Corporation of America (NYSE:LH) to Outperform from In Line, raising the price target to $265 from $260. The upgrade reflects optimism about the company’s ability to deliver above-consensus EPS growth in 2025 and beyond, driven by robust base testing demand, margin expansion, and improvements in operations. LabCorp’s core diagnostics business is expected to sustain 3%-4% organic volume growth even as overall healthcare utilization softens slightly in 2025. Recent data still indicates elevated utilization levels compared to pre-COVID trends, and while some slowdown is anticipated, testing demand is expected to remain solid. The company’s lab volume growth is projected to align with broader healthcare trends but at a steadier pace, given certain procedures, like orthopedics, require minimal lab testing. Invitae, which posed a $0.37 per share drag in 2024, is anticipated to become slightly accretive in 2025, contributing $0.03 to annual EPS. The turnaround is driven by approximately 10% revenue growth and cost synergies, with the impact becoming EPS-neutral by the second quarter and accretive in the latter half of the year. Additionally, diagnostics margins are expected to expand by about 80 basis points, supported by ~4% core growth at a 35% contribution margin and offsetting approximately $45 million in one-time costs from weather, inflation, and labor expenses. According to the analysts, LabCorp’s overall EPS growth in 2025 is likely to exceed the company’s long-term target range of 8.5%-11.5%, highlighting its strong operational trajectory.