Market Overview

Goldman Sachs: Qiagen Has 'Strategic Appeal,' M&A Potential

Goldman Sachs: Qiagen Has 'Strategic Appeal,' M&A Potential
Related QGEN
30 Stocks Moving In Tuesday's Pre-Market Session
Earnings Scheduled For October 29, 2018

Small market caps, attractive growth prospects and idiosyncratic product cycles among diagnostics companies can lead to valuation volatility while also creating attractive M&A opportunities.

The Analyst

Goldman Sachs analyst Patrick Donnelly initiated coverage on the diagnostics sector with a Neutral sector view while assigning Qiagen NV (NYSE: QGEN) a Buy rating.

The Thesis

Qiagen is "a premium diagnostics platform with strategic appeal that should benefit as new product cycles continue to drive growth against abating HPV headwinds," Donnelly said in a note. 

The analyst models approximately 7-percent organic growth through 2020, citing a “clear path to an inflection in growth” as the company works off pricing headwinds from HPV diagnostics products.

Donnelly also assigned Qiagen an M&A value of "1," indicating the company may be an attractive takeout candidate given its scale, growth profile and end market breadth.

“We believe it would be an attractive strategic asset for acquirers looking for a growth-accretive transaction,” said Donnelly, adding that the company’s valuation is reasonable relative to its growth profile.

Price Action

At the time of publication, Qiagen shares were trading down 0.78 percent at $34.45. 

Latest Ratings for QGEN

Oct 2018Morgan StanleyMaintainsOverweightOverweight
Oct 2018Morgan StanleyMaintainsOverweightOverweight
Oct 2018Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for QGEN
View the Latest Analyst Ratings

Posted-In: Diagnostics Goldman Sachs Patrick DonnellyAnalyst Color Biotech Initiation Analyst Ratings General Best of Benzinga


Related Articles (QGEN)

View Comments and Join the Discussion!

Latest Ratings

JBLGoldman SachsUpgrades0.0
JRVRKeefe Bruyette & WoodsDowngrades40.0
ADMPB. Riley FBRDowngrades2.5
EAFVertical GroupDowngrades9.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Quantiacs Is A Crowdsourced Solution To The Quant Talent Drought

Vetr Crowd Downgrades Twitter