Wall Street Maintains Caution on Hologic Despite $18B Buyout Offer
Hologic Inc. (HOLX) remains under Wall Street's skeptical gaze even after accepting an $18.3 billion acquisition proposal from Blackstone and TPG. The deal includes a $76-per-share upfront payment and a potential $3 earnout tied to revenue targets in its breast health division.
Analysts from Raymond James, JPMorgan, and four other firms unanimously issued Hold ratings, reflecting persistent doubts about the company's valuation. The 45-day go-shop provision offers theoretical upside, but the market appears unconvinced—a sentiment compounded by Hologic's stagnant performance in women's health diagnostics.
"This represents fair value, not a premium," observed one healthcare specialist, noting the offer's 12% premium to HOLX's 30-day average sits below typical buyout benchmarks. The tepid response underscores broader skepticism about medtech valuations amid shifting reimbursement landscapes.
