BTIG Starts Hologic (HOLX) at Buy

BTIG initiated coverage on Hologic (NASDAQ: HOLX) with a Buy rating and a price target of $26.00.

Analyst Sean Lavin said, "Barring a very unexpected turn of events (M&A), earnings growth is almost automatic. If Hologic can maintain flat to slightly down revenue and management follows its plan to pay down debt and buy back shares, EPS growth is nearly automatic. As earnings growth shows up, a higher multiple should follow. While ThinPrep declines do worry us, we see expectations as very achievable given expected strong growth in the new 3D mammogram and MyoSure products."

"In F15 and 16 we see a total of about 20% earnings growth. We would expect the multiple to increase about 10% as well leading shares about 30% higher over two years. We note this initiation focuses long term and we are not making a strong call in front of F2Q earnings," he added. "We believe 3D Breast Tomosynthesis and PANTHER with full automation are top notch products with competitive edges and should spur growth. 3D reimbursement soon could create an inflection point in mammography sales."

For an analyst ratings summary and ratings history on Hologic click here. For more ratings news on Hologic click here.

Shares of Hologic closed at $20.48 yesterday.

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