QuidelOrtho Stock Slips on Citigroup Downgrade Over Growth Concerns
The diagnostics firm's price target was cut to $33, reflecting analyst worries about its near-term performance in a post-pandemic market.
Shares of QuidelOrtho (NASDAQ: QDEL) faced downward pressure after Citigroup analyst Patrick Donnelly downgraded the stock from 'Buy' to 'Neutral' and slashed the price target from $40 to $33. The move signals mounting concerns on Wall Street regarding the diagnostic company's near-term growth trajectory.
The for the in-vitro diagnostics provider, which was formed through the 2022 merger of Quidel Corporation and Ortho Clinical Diagnostics. QuidelOrtho, a key player during the COVID-19 pandemic through its development of rapid antigen and molecular tests, is now navigating a challenging market as pandemic-related demand wanes.
This marks the second time in recent months that Citigroup has tempered its expectations for the company. In early August, the bank had previously lowered its price target from $50 to $40 but maintained a 'Buy' rating at the time, citing a positive second-quarter performance and cost management strategies. However, the latest revision to 'Neutral' indicates a deeper apprehension about the company's ability to drive growth in the current environment.
According to offers a broad portfolio of diagnostic solutions across clinical laboratories and transfusion medicine. The company's challenge lies in transitioning its business away from the pandemic-era boom and proving the sustained strength of its core product lines, including its Sofia®, QuickVue®, and VITROS® platforms.
Investors will be closely watching QuidelOrtho's upcoming earnings reports for signs of stabilization and new growth catalysts. The serves as a cautionary note, highlighting the broader pressures facing the diagnostics sector as it adapts to a post-COVID healthcare landscape and seeks to redefine its growth narrative.