Zacks Investment Research upgraded shares of Hologic, Inc. (HOLX) from UNDERPERFORM to NEUTRAL on March 27, 2014, with a target price of $22.00.
Hologic posted improved first-quarter fiscal 2014 results with adjusted EPS of $0.34 which fell 10.5% year over year but beat the Zacks Consensus Estimate by $0.03. The results also exceeded the company's expectation. Revenues of $612.4 million were on par with the Zacks Consensus Estimate of $612 million and edged past the company's guidance range. Amid looming headwinds such as lower sales of legacy products, a challenging capital spending environment, European uncertainty and increasing pricing pressure, Hologic's topline was boosted by strong performance in the 3D tomosynthesis and MyoSure product lines. In addition, the recent higher management churn including some restructuring initiatives, if they are of any indications, should help accelerate organic growth in each of the company's businesses on a global basis, and improve operational and financial efficiency going ahead. Accordingly, we upgrade the stock to Neutral.
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