Zacks Investment Research downgraded shares of Hologic, Inc. (HOLX) from NEUTRAL to UNDERPERFORM on December 19, 2013, with a target price of $20.00.
Hologic posted a dismal fourth-quarter fiscal 2013 with adjusted EPS of $0.35, $0.02 below the Zacks Consensus Estimate. It also failed to meet the company's expectation. Revenues of $622.1 million also missed the mark. Amid looming headwinds such as lower sales of legacy products, European uncertainty and increasing pricing pressure, Hologic posted a disappointing guidance for fiscal 2014. If the dull fiscal 2014 guidance is any indication, the ongoing concerns are likely to persist in the coming fiscal. We also fail to believe that several recent upsides in the breast health such as higher uptake of tomosynthesis, acquisition synergies and competitive wins in key markets will have any immediate positive impact on the company's performance. In absence of any near-term catalyst to pull the shares up, we downgrade the stocks to Underperform.
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