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Canaccord Genuity Maintains a 'Buy' on Hologic (HOLX); Now Largest Pure-Play in Molecular Diagnostics With GPRO Acquisition

May 1, 2012 9:51 AM EDT Send to a Friend
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Price: $24.37 -0.49%

Rating Summary:
    9 Buy, 17 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 17 | New: 21
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Canaccord Genuity maintains a 'Buy' on Hologic (NASDAQ: HOLX) price target of $24.00.

Analyst, Jason R. Mills, said, "We maintain our rating following news that HOLX is acquiring Gen-Probe (Nasdaq: GPRO), which gives HOLX the largest pure play in molecular diagnostics and, most importantly, a highly synergistic, faster-growing women’s’ health asset. We like the acquisition at first blush – namely synergies, and potential for cash flow accretion and growth augmentation. What’s more, we remain bullish about the growth potential of the Breath Health business – namely potential inflection point with 3D Tomo over the next 18-24 months. While this deal is a big bite for HOLX, which understandably raises some concern regarding integration/performance, we believe GPRO is a best-in-class asset that portends obvious synergies that could augment long-term FCF growth."

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 $19.12 yesterday.




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