Piper Jaffray Upgrades Hologic (HOLX) to Overweight

Piper Jaffray upgraded Hologic (NASDAQ: HOLX) from Neutral to Overweight with a price target of $32.00 (from $28.00).

Analyst William Quirk commented, "We are upgrading shares of HOLX to Overweight following our comparison of Hologic's Dimensions 3D system vs. GE's recently FDA approved device as well as our expectations for continued performance improvement as management's turn-around plan takes hold. We view the announcement of 3D CMS reimbursement rates in November as a potential catalyst for 3D penetration and private payer coverage."

He added, "We suspect the bear case on HOLX shares rests on current valuation (12.9x CY16 EPS), although we view this as in-line/a slight discount to HOLX EPS growth potential as its early-stage turn-around plan takes hold. Our $32 price target (was $28) is based on 17x (unchanged) CY16 (was CY15) EPS estimate of $1.87. We recognize HOLX' tendency to "under-promise and over-deliver" introduces modest risk for its upcoming FY15 guidance, although given anticipated CMS tomo reimbursement as well as expectations for minimal near-term impact from GE, we are buyers at current levels."

The firm raised FY 2015 EPS from $1.58 to $1.62 and set FY 2016 at $1.80.

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 $24.14 yesterday.

You May Also Be Interested In

• Bristol-Myers Squibb Co. (BMY) PT Lowered to $64 at Truist Securities
• Zhongji Innolight Co Ltd (300308:CH) PT Raised to RMB223.80 at HSBC
• Sage Therapeutics (SAGE) PT Lowered to $18 at Truist Securities