UPDATE: Bank of America Downgrades Hologic to Neutral on Valuation

Bank of America downgraded Hologic

from Buy to Neutral and raised the price target from $23.00 to $24.00. Bank of America noted, "We are downgrading Hologic to Neutral driven largely by valuation following a 22% increase since early December (vs the medical device group up 10%). While we're raising our PO slightly to $24 (from $23), we find it difficult to justify a higher valuation without expecting meaningful upside to 2013 estimates, which we believe is unlikely. On the top-line, both guidance and consensus for 2013 call for pro forma revenue growth of 5-6%, which implies an acceleration from the 3% level seen in fiscal Q1 to 6-8% in the back half of the year." Hologic closed at $22.75 on Tuesday.