The firm said the company's Dimensions 3D system has "distinct advantages" over General Electric's (GE) recently FDA approved device.
Piper also has increased confidence in Hologic management's turnaround plan and it raised its price target for shares to $32 from $28.
Separately, TheStreet Ratings team rates HOLOGIC INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOLOGIC INC (HOLX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 203.3% when compared to the same quarter one year prior, rising from -$10.95 million to $11.32 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HOLOGIC INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HOLOGIC INC reported poor results of -$4.33 versus -$0.27 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus -$4.33).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HOLOGIC INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $158.39 million or 35.69% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: HOLX Ratings Report