On Thursday, Hologic Inc . (NASDAQ:HOLX) shares saw its price target increased by Argus from $89.00 to $95.00, while the firm retained its Buy rating on the stock. The decision comes as Hologic demonstrates significant growth in its diagnostic systems installations and an expanded testing menu.
The company, known for its medical technology, has seen a substantial increase in its Panther diagnostic systems installations worldwide. Since before 2020, the number of systems has almost doubled, reaching over 3,250.
This growth is particularly notable in overseas markets, which account for about 45% of the installations and are still considered underpenetrated.
Hologic has also broadened its virology and infectious disease testing capabilities, expanding from four approved assays to 20. This expansion is part of the company's strategy to leverage its increased installed base and enhance its product utilization.
The firm anticipates that Hologic's revenue growth in FY24 will be driven by higher diagnostic volumes unrelated to COVID-19 and an increase in elective procedural volumes. This expectation is bolstered by the company's focus on the enhanced utilization of its surgical products.
Additionally, Argus expects that recent acquisitions by Hologic will contribute to the company's financial performance. These strategic moves are seen as a means to diversify and strengthen Hologic's product offerings and market presence.
InvestingPro Insights
As Hologic Inc. (NASDAQ:HOLX) garners a positive outlook from Argus with an increased price target, insights from InvestingPro provide a deeper financial perspective on the company. The management's aggressive share buyback strategy is a notable highlight, reflecting confidence in the company's value. This is complemented by a high shareholder yield, which can be attractive to investors seeking companies with a strong return on their investments.
InvestingPro Data shows that Hologic has a market capitalization of $17.7 billion, with a current P/E ratio at a relatively high 39.32, indicating investors are paying a premium for earnings. However, looking at the adjusted P/E ratio for the last twelve months as of Q2 2024, it stands at a lower 23.75. This suggests a more favorable earnings valuation in recent times. Additionally, the company's revenue for the last twelve months as of Q2 2024 is reported at $3,960.6 million, with a robust gross profit margin of 60.5%, underscoring the company's ability to maintain profitability.
For investors considering Hologic as a potential addition to their portfolio, these financial metrics and InvestingPro Tips can provide a more nuanced understanding of the company's performance and outlook. For more detailed analysis and additional tips, visit https://www.investing.com/pro/HOLX. And don't forget, for those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off. With 10 more InvestingPro Tips available, this can be a valuable resource for making informed investment decisions.
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