QuidelOrtho (QDEL): Assessing Valuation After FDA Clearance for High-Sensitivity Troponin I Assay

QuidelOrtho (QDEL) just secured FDA 510(k) clearance for its VITROS hs Troponin I assay, which is used to help diagnose heart attacks. This latest regulatory milestone may enhance the company’s presence among U.S. hospital laboratories.

See our latest analysis for QuidelOrtho.

After a promising FDA clearance, QuidelOrtho’s share price has shown some volatility, climbing 17% over the past 90 days. However, the company has experienced a tough year-to-date share price return of -38% and a one-year total shareholder return of -29%. Investors are watching for signs of renewed momentum. Despite the recent breakthrough, the long-term total shareholder returns highlight the company’s past challenges, but this regulatory win could signal a shift in sentiment going forward.

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With shares trading well below recent analyst price targets and the company posting signs of renewed growth, is QuidelOrtho now a value play waiting to be discovered, or is the market already pricing in its recovery?

Most Popular Narrative: 31.3% Undervalued

Compared to QuidelOrtho’s last close at $27.71, the most widely followed narrative sees fair value at $40.33, significantly higher. Attention now turns to what might justify such a bold divergence from current trading levels.

Expansion into international markets such as Latin America, Asia Pacific, and underpenetrated regions like China, where differentiated technology, low market share, and a large runway for immunoassay growth exist, positions QuidelOrtho to capture increased demand stemming from global health system focus on early detection and public health surveillance. This development should drive topline revenue growth.

Read the complete narrative.

What’s underneath this bullish outlook? The projected trajectory hinges on an ambitious roadmap of global expansion, pipeline launches, and smarter cost controls. This narrative’s valuation is built on a handful of game-changing numbers that could reset expectations for growth, margins, and profitability. Ready to discover what’s fueling these forecasts?

Result: Fair Value of $40.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent pandemic revenue declines and ongoing product discontinuations could counter these bullish forecasts. This highlights continued uncertainty around QuidelOrtho’s turnaround story.

Find out about the key risks to this QuidelOrtho narrative.

Build Your Own QuidelOrtho Narrative

If you find yourself wanting a deeper look or prefer building your perspective from the ground up, you can craft your own analysis in just minutes. Do it your way

A great starting point for your QuidelOrtho research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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