Analysts’ Opinions Are Mixed on These Healthcare Stocks: Diplomat Pharmacy (NYSE: DPLO), DaVita (NYSE: DVA) and Hologic (NASDAQ: HOLX)

By Jason Carr

Analysts have been eager to weigh in on the Healthcare sector with new ratings on Diplomat Pharmacy (NYSE: DPLO), DaVita (NYSE: DVA) and Hologic (NASDAQ: HOLX).

Diplomat Pharmacy (NYSE: DPLO)

Credit Suisse analyst Robert Willoughby reiterated a Hold rating on Diplomat Pharmacy (NYSE: DPLO) yesterday and set a price target of $18. The company’s shares opened today at $13.88, close to its 52-week low of $12.71.

Willoughby said:

“We are cutting our EPS estimate to $0.85 (from $0.95), but our conviction in these revised forecasts is low with revenue growth slowing and no profit offsets materializing.”

According to TipRanks.com, Willoughby is a 4-star analyst with an average return of 4.9% and a 47.9% success rate. Willoughby covers the Services sector, focusing on stocks such as Walgreens Boots Alliance, The Advisory Board, and AmerisourceBergen.

Currently, the analyst consensus on Diplomat Pharmacy is Hold and the average price target is $17.67, representing a 27.3% upside.

In a report released today, Avondale also downgraded the stock to Hold.
DaVita (NYSE: DVA)

J.P. Morgan analyst Gary Taylor reiterated a Hold rating on DaVita (NYSE: DVA) yesterday and set a price target of $54. The company’s shares opened today at $58, close to its 52-week low of $54.50.

Taylor said:

“DVA beat 3Q16 consensus earnings by 1c and modestly increased (+0.5%, $10m) the midpoint operating income guidance for 2016. That said, adjusted earnings did decline 4% yty (from $1.12 to $1.08) as did kidney operating income (-2% yty from $462m to $452m). Kidney OI slightly beat our estimate, HCP slightly missed (the midpoint of HCP 2016 OI guidance was maintained). Much of the conference call focused on DVA’s decision to temporarily suspend AKF-subsidy applications and the broader issue of ESRD patients enrolled in ACA plans, with DVA offering a more detailed explanation and a legal defense of its policies.”

According to TipRanks.com, Taylor is a 4-star analyst with an average return of 13.8% and a 57.1% success rate. Taylor covers the Healthcare sector, focusing on stocks such as Quest Diagnostics Inc., WellCare Health Plans, and Kindred Healthcare.

DaVita has an analyst consensus of Moderate Buy, with a price target consensus of $66.25.

Hologic (NASDAQ: HOLX)

In a report released yesterday, Tycho Peterson from J.P. Morgan reiterated a Buy rating on Hologic (NASDAQ: HOLX), with a price target of $45. The company’s shares opened today at $38.26.

Peterson commented:

“Hologic (HOLX) reported another strong quarter, with both revenues and EPS above expectations, primarily driven by strength in GYN Surgical (+18% cc) and continued uptake of Genius in the U.S. The company also remained active with capital deployment by repurchasing $48M of convertible debt in the quarter and is now at 2.8x leverage. Along with the strong F4Q results, management also provided initial 2017 guidance of MSD cc revenue growth, which was in-line with expectations (and dispels the bear thesis of possible +3% organic guidance). Looking ahead, we believe that the increased focus on organic growth (aided in part by a number of new products, discussed on the call), combined with de- levering, with continued strength in GYN Surgical and an ongoing favorable mammography cycle in the U.S., should continue to drive shares higher.”

According to TipRanks.com, Peterson is a 5-star analyst with an average return of 11.1% and a 59.7% success rate. Peterson covers the Healthcare sector, focusing on stocks such as Dentsply International Inc., Albany Molecular Research, and Quintiles Transnational.

Currently, the analyst consensus on Hologic is Strong Buy and the average price target is $44, representing a 15.0% upside.

In a report issued on October 28, UBS also reiterated a Buy rating on the stock with a $45 price target.