Skip to main content

Market Overview

Piper Jaffray Says Quidel Shares Can Continue To Rise On The Back Of New Deal With Alere

Share:
Piper Jaffray Says Quidel Shares Can Continue To Rise On The Back Of New Deal With Alere

Analysts at Piper Jaffray turned bullish on Quidel Corporation (NASDAQ: QDEL), mostly due to the company's "sweetening" of its already attractive Alere Inc (NYSE: ALR) asset acquisition. The firm's William R. Quirk upgrades Quidel's stock rating from Neutral to Overweight with a price target boosted from $35 to $50.

Quidel, a diagnostics maker, announced in July it would buy Alere's triage assets but on Monday announced it has revised the agreement to now include the full worldwide BNP business, Quirk highlighted. While the revised deal implies an additional $48 million in BNP revenue, more importantly, the deal will add $50 million to $60 million in EBITDA. In fact, the entire deal could now boost Quidel's annual EBITDA by around $100 million.

The analyst's 2018 earnings per share estimate were also moved higher by 64 percent to $1.34 per share and then rise another 41 percent in fiscal 2019.

"Whether it is luck or being at the right place at the right time, we believe Quidel has done it again and sweetened its already attractive Alere deal," the analyst emphasized.

Looking forward, Quidel's stock is expected to move higher as investors begin to digest the revised deal and accretion estimates, the analyst added. As such, a new multiple of 4x 2018 EV/pro forma revenue is appropriate as opposed to a prior 3x multiple which derives the analyst's new $50 price target.

At last check, shares of Quidel were up 8.12 percent at $44.23.

Related Links:

Mid-Morning Market Update: Markets Edge Higher; AutoZone Earnings Top Expectations

Benzinga's Top Upgrades, Downgrades For September 19, 2017

Latest Ratings for QDEL

DateFirmActionFromTo
Mar 2021Craig-HallumMaintainsBuy
Mar 2021Raymond JamesMaintainsOutperform
Feb 2021Raymond JamesMaintainsOutperform

View More Analyst Ratings for QDEL
View the Latest Analyst Ratings

 

Related Articles (QDEL + ALR)

View Comments and Join the Discussion!

Posted-In: Analyst Color Biotech Long Ideas News Upgrades Health Care Price Target Asset Sales Best of Benzinga

Latest Ratings

StockFirmActionPT
SCYXAegis CapitalMaintains40.0
ARGOBoenning & ScattergoodDowngrades
TLSAZacks Investment ResearchInitiates Coverage On7.5
TOTJP MorganUpgrades
WSOMorgan StanleyMaintains244.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com