Citi has elevated its rating for Hologic (HOLX, Financial) from Neutral to Buy, raising the price target significantly from $60 to $80. The upgrade follows a recent potential acquisition report that has sparked greater interest in the stock. Analysts believe that the fiscal 2025 projections for Hologic appear justified, as current market estimates now align well with existing demand patterns and possible tariff effects.
Moreover, shares of Hologic are presently trading below both their historical averages and those of comparable companies, offering what Citi considers a valuable opportunity for investors. The analysis suggests that the current market conditions are favorable for Hologic, making it an attractive option for potential buyers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Hologic Inc (HOLX, Financial) is $67.47 with a high estimate of $73.00 and a low estimate of $60.00. The average target implies an upside of 3.97% from the current price of $64.90. More detailed estimate data can be found on the Hologic Inc (HOLX) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Hologic Inc's (HOLX, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hologic Inc (HOLX, Financial) in one year is $83.17, suggesting a upside of 28.15% from the current price of $64.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hologic Inc (HOLX) Summary page.
HOLX Key Business Developments
Release Date: May 01, 2025
- Total Revenue: $1.005 billion, a decrease of 0.5% in constant currency.
- Non-GAAP Earnings Per Share (EPS): $1.03, flat compared to a year ago.
- Gross Margin: 61.1%, an improvement of 40 basis points year-over-year.
- Operating Cash Flow: $169.5 million generated in the second quarter.
- Cash and Equivalents: $1.43 billion at quarter end.
- Short-term Investments: $192 million.
- Adjusted Net Leverage Ratio: 0.8x.
- Breast Health Service Revenue: $212.6 million, representing 21% of total revenue, grew by 12%.
- Diagnostics Revenue: $453.6 million, grew 1.5% or 5.2% excluding COVID-related sales.
- Breast Health Revenue: $356.2 million, declined 6.9% or 9.2% organically.
- Surgical Revenue: $162.5 million, increased 5.1% or 1.1% organically.
- Skeletal Revenue: $33 million, grew 22.9%.
- Share Repurchases: $200 million in the second quarter.
- Full Year Revenue Guidance: $4.05 billion to $4.10 billion.
- Full Year Non-GAAP EPS Guidance: $4.15 to $4.25.
- Third Quarter Revenue Guidance: $1 billion to $1.01 billion.
- Third Quarter Non-GAAP EPS Guidance: $1.04 to $1.07.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hologic Inc (HOLX, Financial) reported total revenue of $1.005 billion for the quarter, which was toward the upper end of their guidance.
- Non-GAAP earnings per share were $1.03, at the high end of the guidance range, reflecting solid gross margin expansion.
- The Diagnostics business showed strong growth, particularly in molecular diagnostics, with a 5.2% increase excluding COVID-related sales.
- The company has a strong balance sheet with $1.43 billion in cash and equivalents, providing strategic and financial flexibility.
- Hologic Inc (HOLX) has a highly engaged workforce, with employee engagement scores in the 98th percentile compared to similar companies.
Negative Points
- Total revenue decreased by 0.5% in constant currency, indicating a slight decline compared to the previous year.
- The Breast Health segment experienced a revenue decline of 6.9%, with challenges in gantry replacements and market conditions.
- The company is facing increased costs due to tariffs, with an estimated impact of $20 million to $25 million per quarter.
- Sales expectations for China have been lowered due to geopolitical turbulence, impacting overall revenue forecasts.
- Funding cuts in Africa have led to a significant disruption in the Diagnostics business, particularly affecting HIV testing.
