When determining winners and losers in the 2020-2021 stock market, it is important not to overlook the companies that supply testing kits for COVID-19. The Quidel Corporation (QDEL) manufactures rapid healthcare diagnostic solutions, and received an FDA emergency use authorization for its antigen tests in early May 2020. (See QDEL stock analysis on TipRanks)
Andrew Cooper of Raymond James Financial reported on the stock, stating that although COVID-19 is waning, the company can still stand to profit and see increased investor interest. Cooper reiterated a Buy rating and assigned a price target of $160. This reflects a potential upside of 39.41% from the stock’s Friday closing price.
Cooper described Quidel’s relationship with its main competitor, Abbott Laboratories (ABT), stating that Abbott had lowered its guidance due to diminishing demand for COVID-19 testing, but far more of its core business surrounds the test kit sales than that of Quidel. Additionally, he hypothesized that even before Abbott’s announcement, the information was already baked into Quidel’s share price.
Due to Quidel’s lower base reach, Cooper expects to see quarter-over-quarter growth for Quidel’s Quickvue antigen test, and is anticipating news on a large employer contract which could impact his model. Securing contracts for school testing could also be a boon for the company, and multiyear deals will provide consistent customers and less overall uncertainty.
Cooper opined that QDEL is currently trading “below the value of the base business alone,” and that the company should be worth more.
On TipRanks, Quidel is a Moderate Buy, based on 3 Buy and 1 Sell ratings. The average analyst QDEL price target is $126.67, representing a potential 12-month upside of 10.37%.
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.