Leerink Partners analyst Puneet Souda has maintained their bullish stance on HOLX stock, giving a Buy rating yesterday.
Puneet Souda has given Hologic’s stock a Buy rating due to a combination of factors, primarily the company’s stronger-than-expected financial performance. The firm’s impressive preliminary results for the first quarter of fiscal year 2024, showing a significant organic growth of 5.2% excluding COVID-19 impacts, surpassed both analyst and consensus estimates. This was further highlighted by the 9%+ organic revenue growth after adjusting for additional selling days in the previous fiscal year. The robust growth in Hologic’s Breast Health business, which saw a 13.6% increase organically, along with a 2% organic growth in Molecular Diagnostics excluding COVID-19, underscores the company’s strong market position.
Moreover, the report indicates that despite a slight decrease in overall diagnostics, the Molecular Diagnostics segment saw an uptick, benefiting from the widespread use of Hologic’s Panther system. The forecast for revenue guidance is expected to rise given the first quarter’s performance, indicating confidence in the company’s ongoing momentum. Souda also notes the company’s strategic advancements, suggesting that Hologic has accelerated its strategic plan by several years post-COVID, positioning it favorably for future growth. This culmination of factors, including strong segment growth and a bullish outlook on revenue and earnings, underpins Souda’s Buy rating for Hologic’s stock.
In another report released yesterday, Needham also maintained a Buy rating on the stock with a $83.00 price target.
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Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HOLX in relation to earlier this year.
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Hologic (HOLX) Company Description:
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. The Breast Health segment includes a broad portfolio of breast imaging and related products and accessories, including digital mammography systems, computer-aided detection, for mammography and minimally invasive breast biopsy devices, breast biopsy site markers, and breast biopsy guidance systems. The Diagnostics segment comprises Aptima family of Assays, target capture/nucleic acid extraction techonolgy, transcription-mediated amplification technology, hybridization protection assay and dual kinetic assat technologies, instrumentation, and Invader Chemistry Platform. The Medical Aesthetics segment offers SculpSure; PicoSure, MedLite, and RevLite; and MonaLisa Touch. The GYN Surgical segment encompasses the NovaSure Endometrial Ablation System and the MyoSure Hysteroscopic Tissue Removal System. The Skeletal Health segment covers the discovery and horizon X-ray bone densitometry system, an ultrasound-based osteoporosis assessment product, and Fluoroscan mini C-arm imaging products. The company was founded by S. David Ellenbogen and Jay A. Stein in 1986 and is headquartered in Marlborough, MA.
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