On Wednesday, Stephens reaffirmed its positive outlook on Hologic (NASDAQ:HOLX) shares, maintaining an Overweight rating and a $90.00 price target for the company's stock. The endorsement follows the release of updated cervical cancer screening guidelines by the US Preventive Services Task Force (USPSTF). Hologic's stock concluded the day on a high note as a result of the new guidelines.
The updated USPSTF recommendations continue to endorse a triennial cytology screening for women aged 21 to 29 years, consistent with previous guidance. For women aged 30 to 65 years, the task force now advises screening every five years using high-risk HPV primary screening, which can be clinician or patient-collected. The guidelines also state that cervical cytology alone every three years or cotesting with high-risk HPV testing every five years remain acceptable alternatives.
The analyst from Stephens highlighted that the updated guidelines favor HPV primary screening slightly more than before but are seen as largely better than expected. Prior to the release, there was concern among investors that cytology or cotesting might be excluded from the revised guidelines. The inclusion of these methods in the updated recommendations is perceived as a relief, removing the negative speculation that had been looming over the company.
In summary, the USPSTF's continued support for various screening methods, including those offered by Hologic, is viewed as a positive development for the company. The reaffirmed Overweight rating and price target reflect the analyst's confidence in the stock's potential performance.
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