Hologic Investors Cheer As Barclays Upgrades To Overweight: 'Stronger For Longer' On Breast Health

The brokerage, who also upped the price target by $2 to $44, believes the breast health business will be able to sustain its L-MSD growth with a longer 3D mammography tail, service growth from 3D conversions, and new product launches such as Affirm.

"Our FDA mammography market model improves our conviction in the durability of placements and Hologic share gains," analyst Jack Meehan wrote in a note.

In addition, the Meehan said the company's Panther system strengthened its leadership position at the high-end of MDx workflows and can drive L-MSD growth for the entire diagnostics business alone.

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"The launch of the Fusion PCR sidecar in 2017/2018 will add additional flexibility to the instrument, which could lead to higher consumable pull-through, as the company expands its US menu beyond sexual health into virology," Meehan highlighted.

Importantly, the analyst feels that Panther is "PAMA-proof" for upcoming Dx reimbursement changes, and could be an aggregator of share in a consolidating lab market. Further, the analyst expects at least HSD growth for the GYN Surgical unit from MyoSure strength.

"We believe that at current levels shares offer an attractive entry point, flat YTD versus the S&P 500 up 6 percent and our coverage universe up 15 percent," Meehan added.

Shares of Hologic closed Thursday's regular trading at $38.78. The revised target of $44 represents a potential upside of 13 percent.

Full ratings data available on Benzinga Pro.