Canaccord Genuity Raises Price Target on Hologic (HOLX) Following 3Q Beat and FY15 Guidance Raise

Canaccord Genuity reiterated a Buy rating on Hologic (NASDAQ: HOLX), and raised the price target to $45.00 (from $40.00), following FQ3 results. Adjusted EPS of $0.43 beat the Street's $0.39 estimate. Revenues of $693.9M beat consensus estimates of $654M. HOLX raised FY'15 rev guidance by $82M at the midpoint to $2,687-2,697M, from $2,600-2,620M, and adj. EPS to $1.65-1.66 from $1.57-1.59. HOLX initiated FQ4 revenue guidance of $685-695M and EPS of $0.41-0.42.

Analyst Mark Massaro commented, "Hologic reported a monster FQ3 beat-and-raise, highlighted by 17%+ growth (20% FXN) in 3D breast health that smashed our +6%E forecast. While our last survey data suggested an acceleration, we are startled at the magnitude of the beat as more users upgrade from 2D to 3D. Management stated that more and more radiologists no longer feel good about giving 2D exams to women once they see 3D results, which suggests to us that 3D tomo will work itself into standard of care quicker than we figured. We acknowledge the stock has had a strong run this year and is set to open higher tomorrow. We raise our numbers and our PT to $45 from $40. Looking out, we expect accelerating US revenue growth, operating efficiencies, and eventually, OUS expansion and lower taxes to flow to the bottom line. Reiterate BUY."

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 $38.03 yesterday.

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