UBS Starts Ortho Clinical Diagnostics (OCDX) at Buy

UBS analyst John Sourbeer initiates coverage on Ortho Clinical Diagnostics (NASDAQ: OCDX) with a Buy rating and a price target of $23.00.

The analyst comments "We are initiating coverage of OCDX with a Buy rating and $23 PT. OCDX is a pure play IVD company with an attractive Razor / Razor blade model focusing on Clinical Labs and Transfusion Medicine. OCDX has historically grown revenues LSD and we model revenues accelerating to MSD driven by instrument placements, customer upgrades and exposure to the fast growing China market. We see self-help levers such as margin expansion from operating efficiencies and leverage reduction in addition to revenue acceleration providing DD EPS growth. We see valuation upside if revenues accelerate to the MSD range and leverage approaches the company's 3-3.5x target range."

For an analyst ratings summary and ratings history on Ortho Clinical Diagnostics click here. For more ratings news on Ortho Clinical Diagnostics click here.

Shares of Ortho Clinical Diagnostics closed at $16.79 yesterday.

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