Piper Jaffray Maintains Overweight Rating On HOLX Following Survey

Piper Jaffray is maintaining its Overweight rating and its price target of $24 on Hologic Inc. HOLX, following a recent survey regarding 3D imaging and hurdles to adoption. In the report, Piper Jaffray writes, “We recently conducted a survey of 500 community hospitals, private imaging centers and university hospitals designed to gage market demand for 3D imaging and assess potential hurdles for adoption. Specifically, 40% of current digital mammography users are considering an eventual transition to 3D tomosynthesis mammography, although only 5% have specific adoption plans. Not surprisingly, accounts cited lack of reimbursement (73%) and capital cost (63%) as the primary adoption hurdles. On average, accounts attributing reimbursement as a gaiting factor for adoption believe a 37% premium (median 30%) would be appropriate to justify an upgrade to 3D. We are encouraged with the survey results and believe incremental reimbursement levels for 3D above this 37% average would drive demand for 3D tomosynthesis upgrades/equipment purchases.” HOLX closed yesterday at $21.45.