Barclays on U.S. Diagnostics: Policy, Macro Overhang Persists in Q3
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 11 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on U.S. Diagnostics: Policy, Macro Overhang Persists in Q3
Barclays analyst, Nandita Koshal, said, "We discuss key themes and expectations for September-quarter earnings for our US Diagnostics coverage. Focus names are Gen-Probe (Nasdaq: GPRO) and Sequenom (Nasdaq: SQNM)."
"Utilization trends in developed markets continue to be lackluster. Recent data-points have suggested sluggish, albeit stable, healthcare utilization trends in Q3, with little indication of a 2H rebound despite easing comps. Improvement on this front is primarily a function of a pick-up in the employment outlook, and with little visibility there, Diagnostic sector multiples are likely to remain under pressure in the near term."
"We favor upcoming product cycles that have potential to penetrate sizable new markets. We believe names with significant pipeline catalysts will continue to be supported by positive investor sentiment and estimates that will trend up over time."
"We highlight GPRO as a fundamentally strong story with a maturing pipeline. Its above-peer organic revenue and EPS growth are set to accelerate in FY12 with new product introductions, including HPV and the mid-throughput PANTHER instrument."
"We note that Becton, Dickinson (NYSE: BDX) and Hologic (Nasdaq: HOLX) are set to report their fiscal Q4 results and will provide initial 2012 guidance. We expect both companies to provide conservative guidance to begin with, as utilization and pricing trends remain overhangs, and concerns around academic markets for BDX and capex trends for HOLX keep expectations in check."
"Diagnostic company catalysts in Q4 include analyst days hosted by BDX (New York City, Nov. 9), Qiagen (Nasdaq: QGEN) (at the AMP meeting in Grapevine, TX, Nov. 17), and HOLX (at the RSNA meeting in Chicago, IL, Nov. 29)."
Barclays analyst, Nandita Koshal, said, "We discuss key themes and expectations for September-quarter earnings for our US Diagnostics coverage. Focus names are Gen-Probe (Nasdaq: GPRO) and Sequenom (Nasdaq: SQNM)."
"Utilization trends in developed markets continue to be lackluster. Recent data-points have suggested sluggish, albeit stable, healthcare utilization trends in Q3, with little indication of a 2H rebound despite easing comps. Improvement on this front is primarily a function of a pick-up in the employment outlook, and with little visibility there, Diagnostic sector multiples are likely to remain under pressure in the near term."
"We favor upcoming product cycles that have potential to penetrate sizable new markets. We believe names with significant pipeline catalysts will continue to be supported by positive investor sentiment and estimates that will trend up over time."
"We highlight GPRO as a fundamentally strong story with a maturing pipeline. Its above-peer organic revenue and EPS growth are set to accelerate in FY12 with new product introductions, including HPV and the mid-throughput PANTHER instrument."
"We note that Becton, Dickinson (NYSE: BDX) and Hologic (Nasdaq: HOLX) are set to report their fiscal Q4 results and will provide initial 2012 guidance. We expect both companies to provide conservative guidance to begin with, as utilization and pricing trends remain overhangs, and concerns around academic markets for BDX and capex trends for HOLX keep expectations in check."
"Diagnostic company catalysts in Q4 include analyst days hosted by BDX (New York City, Nov. 9), Qiagen (Nasdaq: QGEN) (at the AMP meeting in Grapevine, TX, Nov. 17), and HOLX (at the RSNA meeting in Chicago, IL, Nov. 29)."
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