Leerink Partners Remains Bullish on Hologic (HOLX) as Lower Tax Rate Helps Drive 1Q Results

Leerink Partners maintained an Outperform rating on Hologic (NASDAQ: HOLX), and cut the price target to $44.00 (from $47.00), following the company's 1Q earnings report. HOLX reported revenue of $695M, which was $6M ahead of the Street's estimate, with outperformance primarily from GYN and Diagnostics. A lower tax rate also helped EPS beat estimates by $0.04.

Analyst Richard Newitter commented, "HOLX delivered another healthy rev./EPS beat marked by solid +8% cc top-line growth, margin outperformance, & raised EPS guidance (despite incremental FX headwinds). Uncharacteristically, there was an "underperformance area" this qtr in OUS breast health (BH). We view this more a matter of execution, and with new leadership in place OUS we would expect to see improvement as the year moves on (we give mgmt the benefit of the doubt to fix execution issues). We continue to believe HOLX's turnaround (& growth sustainability), new product cycle momentum, & EPS upside levers are underappreciated. Our EPS estimates move higher; PT to $44 (vs. $47) on lower group multiple."

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 $35.77 yesterday.

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