Is Quidel a Good Coronavirus Stock to Buy? Analyst Weighs In, , on October 8, 2020 at 1:10 am

By
On October 8, 2020
Tags:

In the battle against COVID-19, another test just got an Emergency Use Authorization (EUA). On Friday, October 2, Quidel (QDEL) announced that its Sofia 2 Flu + SARS Antigen FIA test, or the ABC test (flu A and B, and COVID-19) had been granted EUA. Writing for Raymond James, analyst Andrew Cooper isn’t surprised by the timing, as the company has been confident about having the product ready to go in time for the respiratory season. It should be noted that distributors would have been expected to start building up stock around this point in the year in preparation for the flu season.As for the test’s performance, it was “largely within the realm of expectations for each pathogen as well, with COVID-19 positive percent agreement of 95% and negative percent agreement of 100% but flu A and flu B sensitivity/specificity of 90%/95% and 89%/96% respectively.”Speaking to the product’s potential, Cooper commented, “We view the product as most importantly serving as a tool to enable the company to meet demands of testing during the flu season. In a period where many physicians may opt to test for both COVID-19 and flu given symptom similarities, this enables capacity flexibility, as these scenarios will now necessitate just one actual cartridge vs. Two.”That being said, Cooper points out that the company remains committed to doing whatever is necessary to serve customers requiring other tests during the respiratory season, whether it be respiratory syncytial virus (RSV) or Strep A tests. “Mix will prove an important factor in results, with the ABC test likely priced in the low to mid $30 range to the end user, or high $20 range to Quidel,” Cooper added.Based on the most recent commentary from management, the company plans to reach 2.1 million tests per week in late Q3 and up to 2.8 million per week by the end of Q4. “Management has referenced 70% as a reasonable portion of capacity towards these higher priced COVID-19 solutions, and we think this, combined with the ramping capacity overall, is what gives the team confidence in the $800 million-plus revenue expectation it gave for Q4 late last week,” Cooper mentioned.While the EUA is welcomed news and a de-risking event, it was somewhat expected, and thus, Cooper stays on the sidelines for now. He reiterates a Market Perform (i.e. Hold) rating, and doesn’t assign a specific price target. (To watch Cooper’s track record, click here) Other analysts might have to disagree with Cooper. The Street considers QDEL stock a Strong Buy based on 3 Buy ratings and 1 Hold. The consensus price target stands at $365.50, showing a 31.5% upside from the current cost of a share. (See Quidel stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

Is Quidel a Good Coronavirus Stock to Buy? Analyst Weighs InIn the battle against COVID-19, another test just got an Emergency Use Authorization (EUA). On Friday, October 2, Quidel (QDEL) announced that its Sofia 2 Flu + SARS Antigen FIA test, or the ABC test (flu A and B, and COVID-19) had been granted EUA. Writing for Raymond James, analyst Andrew Cooper isn’t surprised by the timing, as the company has been confident about having the product ready to go in time for the respiratory season. It should be noted that distributors would have been expected to start building up stock around this point in the year in preparation for the flu season.As for the test’s performance, it was “largely within the realm of expectations for each pathogen as well, with COVID-19 positive percent agreement of 95% and negative percent agreement of 100% but flu A and flu B sensitivity/specificity of 90%/95% and 89%/96% respectively.”Speaking to the product’s potential, Cooper commented, “We view the product as most importantly serving as a tool to enable the company to meet demands of testing during the flu season. In a period where many physicians may opt to test for both COVID-19 and flu given symptom similarities, this enables capacity flexibility, as these scenarios will now necessitate just one actual cartridge vs. Two.”That being said, Cooper points out that the company remains committed to doing whatever is necessary to serve customers requiring other tests during the respiratory season, whether it be respiratory syncytial virus (RSV) or Strep A tests. “Mix will prove an important factor in results, with the ABC test likely priced in the low to mid $30 range to the end user, or high $20 range to Quidel,” Cooper added.Based on the most recent commentary from management, the company plans to reach 2.1 million tests per week in late Q3 and up to 2.8 million per week by the end of Q4. “Management has referenced 70% as a reasonable portion of capacity towards these higher priced COVID-19 solutions, and we think this, combined with the ramping capacity overall, is what gives the team confidence in the $800 million-plus revenue expectation it gave for Q4 late last week,” Cooper mentioned.While the EUA is welcomed news and a de-risking event, it was somewhat expected, and thus, Cooper stays on the sidelines for now. He reiterates a Market Perform (i.e. Hold) rating, and doesn’t assign a specific price target. (To watch Cooper’s track record, click here) Other analysts might have to disagree with Cooper. The Street considers QDEL stock a Strong Buy based on 3 Buy ratings and 1 Hold. The consensus price target stands at $365.50, showing a 31.5% upside from the current cost of a share. (See Quidel stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road
#12-01 Capital Tower
Singapore 068912

New York

Coming Soon!

Dubai

Coming Soon!

Market Coverage