Reasons Why Hedge Funds Still Fancy IDEXX Laboratories, Inc. (IDXX)

IDEXX Laboratories, Inc. (NASDAQ:IDXX) is one of the 10 best healthcare equipment stocks to buy according to hedge funds.

On February 9, David Westenberg from Piper Sandler maintained his Overweight rating on IDEXX Laboratories, Inc. (NASDAQ:IDXX). The analyst reduced the target price from $775 to $750, which results in a revised upside of 18%. Westenberg’s downward revision of the price target is based on Piper Sandler’s updated multiple for the stock. It also incorporates 2026 projections that have been rolled forward into 2027.

On February 3, the price target on IDEXX Laboratories, Inc. (NASDAQ:IDXX) was decreased from $830 to $800 by BTIG analyst Mark Massaro. The analyst maintained an Overweight rating on the stock, which yields almost 26% upside potential following the adjustment.

Massaro reflected on the company’s fourth quarter outperformance in terms of revenues and profitability. He also noted the management’s 2026 guidance, which fueled some disappointment. More precisely, the outlook for pet visits remained below consensus estimates. Management has projected it to drop by 200 basis points during 2026.

IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops and sells diagnostic products for animal veterinary, livestock, and poultry, and water microbiology testing. With operations across 175 countries worldwide, the company covers in-clinic chemistry, hematology, immunoassay, urinalysis, and coagulation analyzers. It aims to derive recurring revenues with high margins by placing diagnostic instruments for tests and consumables within veterinary clinics.

While we acknowledge the potential of IDXX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.