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 impacting QuidelOrtho’s financial outlook. One of the primary reasons is the recent $3.4 billion debt refinancing package, which has resulted in an increased interest rate from approximately 6% to 7%. This change is expected to add an annual interest expense of $20 million to $25 million, affecting the company’s earnings per share estimates for the coming years.
Another significant factor influencing the Hold rating is the company’s exposure to the Chinese market, which comprises 12% of its total revenue for 2024. Recent policy changes in China, aimed at prioritizing locally manufactured products in government procurement, have introduced additional risks. Although QuidelOrtho has not yet faced major impacts from tariffs or VBP expansion, these developments have raised concerns among investors, contributing to the cautious stance reflected in the Hold rating.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $28.00 price target.