A Citi analyst bumped medical equipment maker Hologic Inc. from his top stock picks list, citing the pressure a lack of hospital spending will likely place on the company's shares.
In a note to investors, Citi analyst Amit Bhalla reaffirmed his "Buy" rating and $16 price target but said a weak economic environment means any stock price returns will take a longer time to materialize.
On Jan. 12, the Bedford, Mass.-based company slightly increased its first-quarter profit estimate, despite cutting revenue guidance. Cost-cutting initiatives have helped lower expenses.
"We view the results as positive, but expect that the breast health, diagnostic, and surgical segments will continue to face pressure in 2009," he said, citing lower patient admissions and spending.
Hologic's slight boost to its outlook was a relatively strong, compared with its peers. Sunnyvale, Calif.-based Intuitive Surgical Inc. has already announced weaker-than-expected fourth-quarter sales. Meanwhile, Mountain View, Calif.-based Hansen Medical Inc. set fourth-quarter sales expectations below Wall Street forecasts.
Shares of Hologic fell 31 cents, or 2.5 percent, to $11.96 in morning trading. The stock has traded between $10.34 and $33.98 over the past 52 weeks.
Bhalla replaced Hologic on his top picks list with Conshohocken, Pa.-based CardioNet Inc., which makes patient monitoring systems. The stock fell 20 cents to $20.30.
via yahoo
In a note to investors, Citi analyst Amit Bhalla reaffirmed his "Buy" rating and $16 price target but said a weak economic environment means any stock price returns will take a longer time to materialize.
On Jan. 12, the Bedford, Mass.-based company slightly increased its first-quarter profit estimate, despite cutting revenue guidance. Cost-cutting initiatives have helped lower expenses.
"We view the results as positive, but expect that the breast health, diagnostic, and surgical segments will continue to face pressure in 2009," he said, citing lower patient admissions and spending.
Hologic's slight boost to its outlook was a relatively strong, compared with its peers. Sunnyvale, Calif.-based Intuitive Surgical Inc. has already announced weaker-than-expected fourth-quarter sales. Meanwhile, Mountain View, Calif.-based Hansen Medical Inc. set fourth-quarter sales expectations below Wall Street forecasts.
Shares of Hologic fell 31 cents, or 2.5 percent, to $11.96 in morning trading. The stock has traded between $10.34 and $33.98 over the past 52 weeks.
Bhalla replaced Hologic on his top picks list with Conshohocken, Pa.-based CardioNet Inc., which makes patient monitoring systems. The stock fell 20 cents to $20.30.
via yahoo
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