Hologic, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Puneet Souda from Leerink Partners maintained a Hold rating on the stock and has a $78.00 price target.
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Puneet Souda has given his Hold rating due to a combination of factors surrounding Hologic’s recent acquisition announcement. The company is set to be acquired by Blackstone and TPG for a price of $76 per share, with an additional $3 contingent value right (CVR). This acquisition is seen as logical given the challenges Hologic faces in the public market, particularly in its lower-growth business segments compared to other diagnostics and tools companies that are favored for higher growth.
The acquisition by private equity is deemed suitable for Hologic because of its potential for spinning off various business units, its strong cash flow, and low leverage. Despite the acquisition, the market performance rating is maintained due to the expected closure of the deal in the first half of 2026, and the long-standing speculation surrounding it, which suggests that it might not surprise investors. The deal is unique, and while it may slightly enhance M&A sentiment, the overall impact on the diagnostics sector is seen as limited.