UPDATE: Citigroup Reiterates on Hologic on Near-Term Weakness

In a report published Tuesday, Citigroup analyst Amit Bhalla reiterated a Neutral rating on

, but lowered the price target from $24.00 to $22.00. In the report, Citigroup noted, “While HOLX beat the Street by $0.02 on the bottom-line, revenues came in light and F2014 guidance was below Street expectations. 3D mammo remains a positive (+50% Y/Y) and GPRO was up +11%, but ThinPrep (-13% Y/Y) and NovaSure weakness remain a headwind. Initial F14 guidance includes revs down -1-3% (Street expected +3%) and during this ‘transition' year, HOLX expects to complete more asset reviews/sales, further streamline the business, and begin a new $250M share buyback. While we believe these efforts are a positive, a $1.1B write-down on diagnostics (GPRO & ThirdWave) indicates that some businesses may need more time to recover – we remain Neutral-rated.” Hologic closed on Monday at $22.90.