Hologic’s Hold Rating: Balancing Growth in Diagnostics with Challenges in Breast Health and Geopolitical Pressures

Morgan Stanley analyst Tejas Savant has maintained their neutral stance on HOLX stock, giving a Hold rating on May 2.

Tejas Savant has given his Hold rating due to a combination of factors impacting Hologic’s performance. The company’s revenue for the second fiscal quarter was at the high end of expectations, largely due to a recovery in Skeletal Health product supply. However, challenges persist in other areas, such as continued softness in the Breast Health segment and headwinds in HIV testing in Africa.
Despite the growth in the Diagnostics segment, particularly in Molecular Diagnostics, the overall outlook is tempered by external pressures. These include the potential impact of tariffs on future margins and the effects of geopolitical factors, such as China’s economic conditions, which have led to a cautious outlook for the fiscal year 2025. While there are initiatives underway to address these issues, the recovery is expected to take time, leading to a Hold recommendation.

Savant covers the Healthcare sector, focusing on stocks such as Stevanato Group, Charles River Labs, and Pacific Biosciences. According to TipRanks, Savant has an average return of -5.2% and a 40.48% success rate on recommended stocks.