Needham analyst Michael Matson has maintained their neutral stance on HOLX stock, giving a Hold rating on October 23.
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Michael Matson has given his Hold rating due to a combination of factors influencing Hologic’s recent performance. The company’s fourth-quarter revenue and earnings per share exceeded market expectations, which is a positive indicator. However, the decision by management not to provide guidance for the upcoming fiscal year or hold an earnings call following the announcement of its acquisition by Blackstone and TPG introduces uncertainty.
Additionally, while Hologic’s organic sales growth excluding COVID-related impacts showed improvement, the mixed results in margins present a nuanced picture. The gross margin experienced a slight decline, whereas the operating margin saw an increase. These mixed signals, coupled with the acquisition-related uncertainties, contribute to the Hold rating as investors may want to wait for more clarity on the company’s future direction.
Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific, TransMedics Group, and Hologic. According to TipRanks, Matson has an average return of -2.5% and a 39.96% success rate on recommended stocks.
In another report released on October 23, Mizuho Securities also downgraded the stock to a Hold with a $78.00 price target.