UPDATE: Canaccord Genuity Downgrades Hologic on Negative Outlook

In a report published Tuesday, Canaccord Genuity analyst Jason R. Mills downgraded the rating on Hologic HOLX from Buy to Hold, and lowered the price target from $26.00 to $19.00. In the report, Canaccord Genuity noted, “HOLX's commentary at fall brokerage meetings portended a flattish outlook for FY14, but actual '14 guidance on the Q4 call painted an even worse picture of current fundamentals, in our view. While we recognize management is likely attempting to mitigate quarterly misses and suggested FY15 should stabilize, we think growth will remain challenged, thus we downgrade to HOLD and lower our price target to $19, based on our five-year DCF, which uses a generous 14x terminal multiple (notwithstanding low/mid-single-digit FCF CAGR) and 7% discount rate. We would not be constructive buyers unless weakness is significant.” Hologic closed on Monday at $22.90.