Hologic (HOLX): Tracking 3D Adoption; UBS Evidence Lab Coincides with Guidance

UBS Hologic (NASDAQ: HOLX) analyst, Jonathan Groberg, worked with the UBS Evidence Lab to develop a proprietary Genius 3D Adoption Tracker. His tracker reviewed 16,000 individual healthcare facilities and thousands of drive-time trade areas to understand Genius 3D adoption trends and dynamics. His latest tracker shows the 3D market to be ~24% penetrated, compared to ~13% previously. This is an estimated 8 pp delta below that of 2D at the same point in its cycle, similar to the last update. It is worth noting that we have two interim data points between these two reports which indicate a potential sequential flattening in 3D adoption relative to 2D in the most recent quarter. This is consistent with management's latest update.

No change to Buy rating or $45 PT.

The analyst's Buy rating is based on the following: 1) There has been a complete overhaul of senior leadership at the firm; 2) We estimate that in the near-term Genius 3D and Molecular Dx growth is enough to offset challenges in the rest of the portfolio; 3) Long-term HOLX has many levers to continue to improve returns for shareholders and is much more than a Genius story.

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 $34.32 yesterday.

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