Analyst Derik De Bruin of Bank of America Securities maintained a Hold rating on Hologic (HOLX – Research Report), with a price target of $75.00.
Geoff Meacham has given his Hold rating due to a combination of factors concerning Hologic’s financial performance and market valuation. Hologic’s preliminary financial results for the first quarter of fiscal year 2024 surpassed both Bank of America’s and general market expectations, contributing to a positive outlook on the company’s core business, excluding COVID-related sales. While all segments other than Skeletal showed better than anticipated results, Hologic’s organic sales growth and anticipated earnings per share at the higher end of their guidance suggest a strong business position.
Despite those encouraging signs, Meacham maintains an unbiased stance on inventory, believing that the existing percentage value as it should be reflects the company’s cost relative to its peers in the diagnostics and medical generation sectors. This valuation implies that Hologic’s inventory is unlikely to offer significant growth prospects at the current value level, which justifies the Hold recommendation. In addition, the report anticipates new insights from the company’s upcoming convention presentation, specifically in relation to its margins and capital deployment strategies.
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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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