Piper Jaffray downgraded Hologic (NASDAQ: HOLX) from Overweight to Neutral with a price target of $38.00 on valuation.

Analyst William Quirk commented, "Our fundamental turnaround thesis on Hologic remains intact, however, with HOLX shares trading north of 20x FY16E, we believe shares are fairly valued and warrant a Neutral rating. We continue to anticipate 3D Breast conversion, NAT traction and HPV share gains to drive growth, and remain confident in management's OUS strategy. Additionally, we expect cost reduction plans (level load manufacturing, increase inventory turns, lower effective tax rate) to drive EPS growth. We would view pullbacks into the low $30s as an attractive entry point. We reiterate our $38 price target and are lowering our rating from Overweight to Neutral."

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Shares of Hologic closed at $39.24 yesterday.