Needham analyst Michael Matson has reiterated their bullish stance on HOLX stock, giving a Buy rating on April 29.
Michael Matson has given his Buy rating due to a combination of factors including Hologic’s solid performance excluding their COVID-related businesses, as well as their ability to surpass market expectations. In the second fiscal quarter of 2024, Hologic showcased sales and earnings per share that not only beat consensus estimates but also came with improved guidance for the rest of the fiscal year. Despite a slight deceleration in organic sales growth without COVID-related products, the company still maintains a positive growth trajectory driven by its non-COVID Diagnostics and GYN Surgical segments.
Matson’s optimistic stance is further supported by Hologic’s financial discipline, as evidenced by their gross and operating margins outperforming consensus predictions, even though these were slightly lower year-over-year due to the expected decrease in COVID testing revenue. Looking forward, the analyst anticipates that Hologic is on the verge of overcoming the headwinds from the decline in COVID testing and is projected to return to its historical reported growth rate of 5-7% by fiscal year 2025. This anticipated recovery reinforces the Buy rating and suggests a promising outlook for the company’s performance.
According to TipRanks, Matson is an analyst with an average return of -5.0% and a 44.67% success rate. Matson covers the Healthcare sector, focusing on stocks such as Atricure, Hologic, and Merit Medical Systems.
In another report released on April 29, Leerink Partners also maintained a Buy rating on the stock with a $118.00 price target.
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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.
