Stifel Upgrades Hologic (HOLX) to Buy

Stifel upgraded Hologic (NASDAQ: HOLX) from Hold to Buy with a price target of $45.00.

Analyst Jonathan Block commented, "Our diligence leads us to believe that Hologic’s transformation from a broken story to a successful turnaround will continue to evolve into a sustainable multi-year growth story. Our work with molecular labs and physicians (slide deck published separately; conference call tomorrow 10am ET) shows increasing volume of currently approved sexually transmitted infection assays (STI) on the Panther platform in the coming years. Importantly, a subset of labs exhibit a solid level of interest in porting their current/future viral load testing (HIV-1, HBV, HCV) over to the Panther platform upon assay approval, a scenario we see starting to unfold in 2017 and gaining momentum in 2018 and beyond. The viral load opportunity (in $) is approximately as large as that of STI. Our bullish Panther findings may act as the next leg of growth and help soften the eventual deceleration in breast health revenue, as Tomo adoption moves beyond 50%+ penetration post 2017. Lurking in the background is a modestly growing surgical business, as our diligence shows continued strong momentum in MyoSure and a largely stable NovaSure business."

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 $37.77 yesterday.

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