Canaccord Believes IDEXX Labs Can Meet Guidance

Canaccord Genuity reiterated its Buy rating on IDEXX Laboratories, Inc. IDXX and lifted the price target to $98 from $90.

In a report released Wednesday, the analysts stated their positive sentiment for the near-to mid-term trajectory of the company's U.S. business prospects, given that fewer practices are switching, and it's getting harder for the company's competition to swap it out.

In addition, the analysts believe the setup on the stock, despite a steadily rising stock price, is good, as both consensus expectations and guidance appear to be achievable to them. According to the analysts, the international growth, reference lab and new products could mark upside from here.

The analyst expect the company to report Q2 revenues of $445 million (+7.6 percent year-over-year) and adjusted EPS of $0.61, compared to the Street's $445 million (+7.6 percent) and $0.62.

"We think IDEXX needs to beat to trade higher given the strong outperformance this year, though we think the setup is not particularly difficult. We are not expecting any material change to 2016 guidance, which calls for +8-9 percent Y/Y reported revenue growth, or +9-10 percent Y/Y organic growth and Adj. EPS of $2.18-2.25 (+3-7 percent Y/Y, or +13-17 percent Y/Y FXN)," wrote Canaccord.