Hologic Shares Fall As Analyst Issues Downgrade

NEW YORK (AP) — Shares of Hologic Inc., which makes diagnostics products for women, fell Wednesday as a Canaccord Adams analyst downgraded the stock on valuation and concerns over hospital spending.

The stock shed 48 cents, or 3 percent, to reach $15.72 in morning trading. The stock has traded between $9.31 and $21.86 over the last 52 weeks.

Canaccord Adams analyst Matthew Scalo downgraded shares to "Hold" from "Buy", but reaffirmed a $16 price target, based on its relative valuation.

"We can debate how much of the S&P 500 growth is stimulus related, but without significant outperformance from one of Hologic's recent FDA approved devices, we cannot argue that Hologic's growth profile deserves a valuation multiple at or above the S&P 500," he said, in a note to investors.

On Tuesday, the Bedford, Mass.-based company said the Food and Drug Administration approved a new version of its MammoSite system, which delivers radiation seeds to prevent recurrences of breast cancer. Hologic said the new version of the device will allow therapists to treat patients who are not otherwise good candidates for radiation seeding. It said it will also be usable in more typical cases.