Needham Reiterates a Hold Rating on Hologic

By Ryan Adsit

In a report released today, Michael Matson from Needham reiterated a Hold rating on Hologic (NASDAQ: HOLX). The company’s shares opened today at $37.19.

Matson noted:

“HOLX’s F4Q16 revenue and EPS beat consensus. Management’s initial FY17 revenue and EPS guidance were modestly above consensus despite investor fears. HOLX’s revenue growth increased slightly to 3.8% CC in F4Q16 from 3.6% CC in F3Q16 despite facing a very difficult comp of 12.2% CC revenue growth in F4Q15. Positives include 10% CC growth in Molecular Diagnostics and 18% CC growth in GYN Surgical. Negatives include modest 2% CC growth in Breast Health growth and a 6% CC decline in Blood Screening. HOLX has now lapped its most difficult comps and faces steadily easing comps during FY17 which should allow it to see accelerating revenue growth particularly in F2H17.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 5.8% and a 58.3% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Cardiovascular Systems, and Zimmer Biomet Holdings.

Hologic has an analyst consensus of Strong Buy, with a price target consensus of $44.60.

The company has a one year high of $41.66 and a one year low of $31.84. Currently, Hologic has an average volume of 2.24M.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HOLX in relation to earlier this year. Most recently, in July 2016, Nancy Leaming, a Director at HOLX bought 5,029 shares for a total of $72,921.

Hologic, Inc. engages in the development, manufacture and supply diagnostics products, medical imaging systems and surgical products dedicated to serve the healthcare needs of women. The company operates through four business segments: Breast Health, Diagnostics, GYN Surgical and Skeletal Health. The Breast Health segment products include a broad portfolio of breast imaging and related products and accessories, including digital and film-based mammography systems, magnetic resonance imaging, breast coils, computer-aided detection for mammography and MRI, minimally invasive breast biopsy devices, breast biopsy site markers, breast biopsy guidance systems, breast imaging comfort pads, and breast brachytherapy products. It has also developed a new breast imaging platform, Dimensions, which utilizes a new technology, tomosynthesis, to produce three dimensional images, as well as conventional two dimensional full field digital mammography images. The Diagnostics segment products include the ThinPrep system, which is primarily used in cytology applications such as cervical cancer screening, the Rapid Fetal Fibronectin Test, which assists physicians in assessing the risk of pre-term birth, and its molecular diagnostic reagents used for a variety of DNA and RNA analysis applications based on its proprietary Invader chemistry. Its current molecular diagnostic offerings based upon this Invader chemistry include Cervista HPV high risk and Cervista HPV 16/18 products to assist in the diagnosis of human papillomavirus, as well as other products to diagnose cystic fibrosis, cardiovascular risk and other diseases. The GYN Surgical segment products include the NovaSure Endometrial Ablation System and the MyoSure Hysteroscopic Tissue Removal System. The MyoSure system is a tissue removal device that is designed to provide incision-less removal of fibroids and polyps within the uterus. The Skeletal Health segment products include dual-energy X-ray bone densitometry systems, 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 October, 1985 and is headquartered in Bedford, MA.