IDEXX Laboratories Delivered Strong Results Despite Lackluster Vet Visit Backdrop, UBS Says

01:04 PM EST, 11/03/2026 (MT Newswires) -- IDEXX Laboratories' (IDXX) latest results demonstrated its ability to sustain strong performance despite ongoing pressures on vet visits that are showing no signs of a recovery, UBS Securities said in a note e-mailed Tuesday. On Monday, shares of the animal diagnostics and healthcare company surged nearly 22% after it posted stronger-than-expected third-quarter results and raised its 2026 outlook. "We're comfortable with the updated guide at this point, which continues to show that we have a lot of momentum in the business," IDEXX Chief Financial Officer Andrew Emerson said on an earnings conference call, according to a FactSet transcript. "We can continue to work through some of (the) pressures on clinical visits." IDEXX now expects full-year organic revenue to grow between 9.3% and 10%, an increase of 0.6% at midpoint, the company said. "The core fundamental takeaway is (IDEXX's) continued to ability to maintain a strong pricing/revenue pick-up despite vet visits being down in the (low-single digits) and showing no signs of recovery," UBS analysts, including Andrea Alfonso, said in the note to clients. "Crucially, international execution stood out to us most, with 14% organic revenue growth driven by accelerated commercial expansions." The stock rally was fueled by "a mix of positioning" and reflected a consumer discretionary sector-wide rebound, UBS said. "We view the sharp positive stock reaction as less about a fundamental inflection and more a broader market realization that the stock has been significantly punished at recent lows (caught in the crosshairs of a potentially brewing price war on the companion animal therapeutic side)," the analysts said. "We see limited catalysts for multiple expansion from current levels." UBS maintained its neutral rating on the IDEXX stock while raising its price target to $700 from $627. The brokerage increased its full-year EPS outlook for the company to $15.15 from $14.91 and its revenue estimate to $4.76 billion from $4.73 billion. UBS said its long-term revenue projections are "conservatively below" consensus and the company's own outlook as it awaits more clarity on key inputs, including the trajectory of capital equipment growth, veterinary visits and net price growth. Elsewhere in the industry, Neogen (NEOG) last month reported strong fiscal first-quarter results. Thermo Fisher Scientific's (TMO) fiscal third-quarter results came in higher than expected. Price: 673.62, Change: +1.98, Percent Change: +0.29