Citi Upgrades Hologic (HOLX) to Buy

Citi analyst Patrick Donnelly upgraded Hologic (NASDAQ: HOLX) from Neutral to Buy with a price target of $95.00 (from $80.00).

The analyst comments "We downgrade BIO to Neutral (TP $365) and upgrade HOLX to Buy (TP $95) and SHC to Buy/HR (TP $16). For BIO, visibility remains limited on the ability to achieve its Life Sciences revenue ramp given the lack of tangible catalysts. We also see some risk to the 2H margin ramp as well (consensus modeling GMs particularly high), and while the discounted valuation remains attractive, we do not expect investors to step in until execution is more consistent. For HOLX, we believe the USPSTF overhang has outweighed the strong core performance; even if there is a change, we see the impact as manageable in the forward-year estimates. Additionally, the FY24 guide looks conservative and does not rely on a significant second-half market recovery, differentiating itself from other companies within our coverage, which we view positively. On SHC, the impact from the recent litigation news has driven the multiple to a point where we feel it overstates the possibility of any near-term litigation risk. No updates are expected in FY24 with no timelines established for cases in CA, IL, and NM, and the next update for GA cases is expected early FY25."

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 $76.08 yesterday.

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