RBC Capital upgrades Hologic stock to Outperform on expected growth

Investing.com - RBC Capital upgraded Hologic (NASDAQ:HOLX), a $15.1 billion medical technology company, from Sector Perform to Outperform on Wednesday, while raising its price target to $87.00 from $72.00. According to InvestingPro data, the stock appears undervalued at its current price of $67.82.

The upgrade comes as RBC anticipates Hologic will issue fiscal year 2026 organic revenue growth guidance that exceeds current Street estimates of 4.3% when the company reports in approximately three months. InvestingPro analysis reveals that 14 analysts have recently revised their earnings estimates upward, with additional insights available to subscribers.

RBC believes this stronger-than-expected growth outlook will give investors confidence in sustainable mid-single-digit growth, potentially leading to multiple expansion for the stock.

The firm’s analysis suggests Hologic’s organic revenue growth will accelerate from current fiscal year 2025 guidance levels of 0.6% to 0.8%, driven partly by contributions from recent acquisitions including Gynosconics and Endomag.

RBC also noted that one-time headwinds affecting fiscal year 2025 revenue are unlikely to repeat in fiscal year 2026 or beyond, further supporting the improved growth outlook.

In other recent news, Hologic Inc . reported its fiscal third-quarter 2025 earnings, surpassing Wall Street expectations with earnings per share (EPS) of $1.08 compared to the forecast of $1.05. The company’s revenue reached $1.024 billion, slightly exceeding the anticipated $1.01 billion. Notably, the Skeletal Health segment generated $31 million in revenue, outperforming the expected $23 million, while the Interventional Breast segment delivered $100 million, surpassing Street expectations of $83 million. Following these strong quarterly results, Mizuho (NYSE:MFG) raised its price target for Hologic to $75 from $70 and maintained an Outperform rating on the stock. Despite the positive earnings report, Hologic’s stock experienced a 1.57% dip in aftermarket trading, reflecting investor caution amid broader economic concerns. These developments highlight the company’s robust performance in key segments and the confidence expressed by Mizuho through the increased price target.

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