Needham Keeps a Buy Rating on Hologic (HOLX)

By Austin Angelo

Needham analyst Michael Matson maintained a Buy rating on Hologic (HOLXResearch Report) today and set a price target of $48. The company’s shares opened today at $42.62.

Matson wrote:

“FDA’s latest monthly Act (MQSA) statistics were published on 1/7/19. The number of digital breast tomosynthesis (DBT) units increased by 66 during December which represents a 3% Y/ Y decrease. DBT unit penetration increased to 34.9% from 34.7% last month and facility penetration increased to 56.8% from 56.3% last month. More importantly, DBT units placements were down 2.5% in 4Q18 vs. 4Q17. HOLX’s Breast Imaging growth slowed slightly in January data seems to indicate that growth could slow more in F1Q19. We note however that HOLX preannounced F1Q19 results last week which included strong Breast Health performance. We note that HOLX’s 3D mammography sales are less than 13% of its total sales. Please contact your Needham salesperson for a copy of our MQSA data.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 10.2% and a 59.6% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Currently, the analyst consensus on Hologic is a Moderate Buy with an average price target of $44.33.

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Based on Hologic’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $50.5 million. In comparison, last year the company had a net profit of $407 million.

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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.