Cowen Downgrades Hologic

Cowen and Company analyst Doug Schenkel downgraded Hologic, Inc. (NASDAQ: HOLX) from Outperform to Market Perform and lowered the price target from $25.50 to $24.

Schenkel noted that Hologic is "not on the cusp of revenue re-acceleration" with growth headwinds including legacy 2D mammography sales, NovaSure, Gen-Probe, and ThinPrep remaining persistent. Cowen added that management has outperformed peers operationally and the analyst has concern that the company has not generated an acceleration of 3D Tomo adoption despite FDA approval from two years ago. Cowen's analysis on Hologic lacks near-term meanigful upside.

The analyst commented, "We believe that some investors may have the perception that Hologic's management team has done an inadequate job in managing the company operationally and that a new management team could improve margins and drive incremental shareholder value. However, as our following peer group analysis demonstrates, we believe that Hologic's management team has arguably outperformed peers in terms of maintaining margins."

Hologic closed at $22.39 on Friday.