OCDX - Ortho Clinical cut to Neutral at H.C. Wainwright after Quidel acquisition
H.C. Wainwright analyst Yi Chen downgraded Ortho Clinical Diagnostics (NASDAQ:OCDX) to Neutral from Buy with a price target (PT) of $24.68, down from $30, after Quidel (NASDAQ:QDEL) agreed to acquire the company for $6B. The PT set to $24.68 implies a premium of ~16.6% from last close of $21.16. The analyst does not expect a competitive bid for Ortho "at this point." Chen notes that the management teams expect the transaction to close in H1 2022. Further commenting on QDEL, Raymond James analyst Andrew Cooper says the acquisition transforms Quidel away from a "more volatile" player substantially tied to the respiratory season to a "more predictable diversified entity." However, this "comes at the cost of a lower ceiling on growth." Bulls on the stock were hopeful the company could approach the 18% non-COVID-19 annual growth target through 2024, but adding some $2B in slower growth revenues "will be a major
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Ortho Clinical cut to Neutral at H.C. Wainwright after Quidel acquisition