Hologic Waiting On FDA Panel

Hologic, Inc.

is waiting review on Selenia 3D Tomosynthesis PMA at the FDA's Centers for Disease and Radiological Health (CDRH) on 9/24, according to Jefferies, which is expecting a positive ruling on safety and efficacy. Jefferies writes "[We] believe that risk/reward heading into the CDRH Panel meeting is favorable given our expectation for a positive outcome and an approval's potential impact to F12 earnings power. Upside/downside on a forward P/E basis could be 14.0x-14.5x to the upside and 11x to the downside, translating to upside potential of $18.50-$19.00 and downside potential of sub $14.00 based on our $1.28 FY11 estimate (19% upside to 12.5% downside). We view a positive panel scenario in the 70% probability range." Jefferies maintains its Buy rating but has raised the price target from $17 to $19. Hologic, Inc. closed yesterday at $16.04.