“We believe the stock is up today because HOLX (1) removed uncertainty regarding its 2019 guide and (2) announced agreements to renew with LH and DGX, which we think alleviates a modest overhang on the stock. HOLX’s top line guide of ~2-3.5% growth is not enough for us to get excited about. We look for signs of faster growth and progress mitigating margin drags and reiterate our HOLD. We raise our PT from $41 to $43, as we roll forward a 16.5x multiple on our new ’20E Adj. EPS of $2.60. Alleviates lab contract overhang. HOLX has agreed to deals with large lab customers (LH & DGX), a positive outcome to a modest overhang on the stock. One deal is a “multi- year” extension of its supply contract while the other provides instruments and tests. While we view these deals favorably, we believe HOLX likely made price concessions to do the deals.”
According to TipRanks.com, Massaro is a 5-star analyst with an average return of 17.9% and a 57.3% success rate. Massaro covers the Healthcare sector, focusing on stocks such as HTG Molecular Diagnostics, Quanterix Corporation, and Orasure Technologies.
Hologic has an analyst consensus of Moderate Buy, with a price target consensus of $44.50.
The company has a one-year high of $45.09 and a one-year low of $35.10. Currently, Hologic has an average volume of 1.99M.
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Hologic, Inc. engages in the development, manufacture, and supply of diagnostics products, medical imaging systems, and surgical products dedicated to serve the healthcare needs of women. It operates through the following business segments: Breast Health, Diagnostics, Medical Aesthetics, GYN Surgical, and Skeletal Health.