Quest Diagnostics
Thesis
Quest Diagnostics is expected to face secular pressures due to commoditization of services, unfavorable regulations, and increased buyer bargaining power, leading to persistent pricing and volume pressure. The company has been unable to offset cost inflation through its cost savings program and has relied on acquisitions to mask declining profits. A DCF analysis suggests a target price of $35 per share, indicating significant downside from current levels.
Did it work?
No price performance data is available and the time elapsed since the pitch is unknown, so the short thesis cannot be judged against actual returns. The thesis's specific claims — persistent pricing and volume pressure, declining profits masked by acquisitions, and a DCF-derived $35 target — cannot be confirmed or refuted with the information provided. Without either a return figure or evidence that the predicted secular deterioration did or did not materialize, no verdict on the short is possible.