These stocks are best positioned to benefit from a coming Covid-19 testing surge, Jefferies says

Laboratory Corporation of America Holdings (LabCorp) phlebotomist processes a lab sample at a Community Clinic Inc. health center in Silver Spring, Maryland.
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A dramatic expansion in U.S. Covid-19 testing capabilities will benefit a handful of companies and reveal a new, $60 billion market for test suppliers and lab operators over the next 12 months, Jefferies told clients Monday.

The Jefferies team studied the gap between current Covid testing capacity and forecasted need and found that a U.S. national test, trace and track program would require somewhere between 400 million and 700 million tests.

Such a massive undertaking, the team wrote, will likely accrue to about half a dozen test suppliers and labor operators, which will work in tandem to provide and conduct desperately needed testing for Americans over the next year.