Proposed Acquisition Of Sentinelle Medical To Expand HOLX’s Presence In Breast MRI Segment
Analysts at Jefferies & Co reiterate their "buy" rating on Hologic (NASDAQ: HOLX). The target price for HOLX is set to $20.
HOLX is acquiring privately held Sentinelle Medical in a deal amounting to $85 million in cash plus earn-outs. According to Jefferies & Co, “Proposed acquisition positions company as MRI component supplier to top OEMs.” The analysts say, “Hologic's proposed acquisition of Sentinelle Medical gives the company a larger presence within the breast MRI segment of the market, an area that can be considered complimentary to the company's core imaging portfolio (Selenia and eventually Breast Tomosynthesis) as well as the company's Automated Tissue Excision and Collection (ATEC) breast biopsy product line.”
“More important than the estimated revenue and EPS contribution (we are forecasting $20MM and $0.02 after the first neutral year), the proposed acquisition positions Hologic as a components and peripherals provider to MRI OEMs GE Healthcare, Siemens Medical, and Toshiba. We believe that Hologic will leverage these relationships to advance its own breast MRI development programs and eventually end customer relationships. Hologic had a similar supply relationship with Siemens for digital mammography components which we view as instrumental in the company bringing new technologies to market such as Selenia,” the analysts add.
