QDEL: New Cardiac And Respiratory Test Approvals Will Drive Shares Higher

Analysts have modestly revised their price target for QuidelOrtho upward to approximately 37.67 dollars per share, citing a slightly lower perceived risk profile reflected in the reduced discount rate, while keeping revenue growth and valuation expectations largely unchanged.

What's in the News

• Issued fiscal 2025 revenue guidance of 2.68 billion to 2.74 billion dollars, signaling steady growth expectations despite a challenging diagnostics backdrop (company guidance)
• Received FDA 510(k) clearance for the VITROS hs Troponin I Assay for quantitative cardiac troponin I measurement to aid in myocardial infarction diagnosis, with U.S. commercial rollout planned later this year (FDA clearance announcement)
• Expanded its QUICKVUE portfolio with the CLIA waived, 510(k) cleared QUICKVUE Influenza + SARS rapid combo test, enabling simultaneous detection of influenza A, influenza B and SARS CoV 2 from a single sample in about 10 minutes (product launch announcement)

Valuation Changes

• The fair value estimate is unchanged at approximately 37.67 dollars per share, indicating a stable central valuation view.
• The discount rate has been reduced modestly from about 11.67 percent to approximately 11.16 percent, reflecting a slightly lower perceived risk profile.
• Revenue growth is effectively unchanged at roughly 3.0 percent annually, signaling stable long term top line expectations.
• The net profit margin has edged down slightly from about 13.38 percent to around 13.12 percent, implying a marginally more conservative profitability outlook.
• The future P E multiple has ticked up marginally from roughly 9.11 times to about 9.16 times, suggesting a slightly higher valuation applied to forward earnings.