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Evercore ISI Downgrades Hologic to Hold Rating

NEW YORK (GenomeWeb) – Evercore ISI today downgraded Hologic's stock to a Hold rating, saying that the firm's current share price has "limited upside" to Evercore's price target of $38.50. 

The investment bank previously had a Buy rating on Hologic, and in a research note, analyst Vijay Kumar noted that while he believes that the firm's 3D tomography adoption cycle is entering its "sweet spot … we believe that the stock is appropriately pricing in the optimism, and are moving to the sidelines as we think much of our thesis has played out." 

Kumar noted that Hologic CEO Steve MacMillan has done a "remarkable" job turning the company around by securing "premium reimbursement" for the company's 3D tomo tests and stabilizing its base business. But while management should drive efficiencies, competitive pricing pressures in the diagnostics space and mammography will largely offset productivity gains, Kumar said. 

In afternoon trading on the Nasdaq, Hologic's shares were up a fraction of 1 percent at $38.89.