Labcorp Holdings Inc

LH: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$275.00	Dxtvbj	Pyggqycwv

LabCorp Navigates Softening Demand for COVID-19 Tests in Q1; Shares Moderately Undervalued

Debbie S. Wang

Apr 28, 2022

LabCorp posted first-quarter results that were generally consistent with our expectations, and we’re holding steady in our fair value estimate, as nothing in the quarter prompted us to materially change our underlying assumptions. We remain confident in the firm’s narrow economic moat, as LabCorp continues to benefit from its scale-derived cost advantage. Nonetheless, we expect near-term profitability to be constrained by ongoing pressure from labor and transportation costs as well as decisions about how much excess capacity to carry in the event another COVID-19 variant emerges.

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