HOLX - Hologic cut to Neutral at BTIG on macro concerns

• BTIG has downgraded Hologic, Inc. ( NASDAQ: HOLX ), a developer of medical equipment targeting female health, to Neutral from Buy, noting mainly the macro-related issues which, according to the analysts, generally fell outside the company’s control.
• Noting its previous bullish view for Hologic ( HOLX ), the firm argues that the company’s supply challenges in its Breast Health business are likely to worsen in 3Q and 4Q before signs of improvement in 2023.
• In addition, they point to rising concerns over capital expenditure ahead of a recessionary environment, while COVID testing slows down, removing a potential offset to wakening women’s wellness visits and elective gynecological surgery.
• BTIG also argues that the company’s operating expenses are likely to remain elevated, and despite the current procedure trends, the Street’s adj. EPS forecasts for FY23 seem excessive given the implied guidance for 4Q 2022.
• Beating analyst estimates with its 2Q financials for fiscal 2022, Hologic ( HOLX ) projected $0.67 – $0.72 of adjusted EPS for 3QFY22 in April.

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