William Blair analyst Andrew Brackmann has reiterated their neutral stance on QDEL stock, giving a Hold rating today.
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Andrew Brackmann has given his Hold rating due to a combination of factors including QuidelOrtho’s recent performance and market conditions. The company’s second-quarter results were in line with or exceeded expectations, and they maintained their full-year guidance for revenue and earnings despite challenges such as reduced COVID testing sales and a soft market in China. This consistency in meeting objectives provides some confidence in the company’s potential for margin expansion.
However, while the current valuation of QuidelOrtho’s shares might seem low, Brackmann believes that more evidence of sustained margin growth is necessary before considering an upgrade. The company is on a path to potentially achieve a mid-20% AEBITDA margin by 2026, but until there is more certainty in this trajectory, a Hold rating is deemed appropriate. The decision reflects a cautious optimism, acknowledging the company’s achievements while recognizing the need for further progress in its financial metrics.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $23.50 price target.