Why is up today. Robertson Stephens Raises Price Target, Reiterates Buy
Rating on CYTC
Business Wire - January 07, 2000 11:00
SAN FRANCISCO--(BUSINESS WIRE)--Jan. 7, 2000--Robertson Stephens Senior
Medical Technology Analyst Wade H. King, M.D., a 1999 Wall Street Journal All-Star
Analyst, today reiterated his Buy rating on Cytyc Corp. (NASDAQ:CYTC). The company,
based in Boxbourough, Mass., offers the ThinPrep System, a superior alternative to the
conventional Pap smear.
"We are reiterating our Buy rating on Cytyc," said King. "Yesterday, Cytyc announced that it
has signed a renewed agreement with Quest Diagnostics. Quest has been a strong proponent of
the ThinPrep System, establishing extensive marketing efforts highlighting ThinPrep's enhanced
disease detection compared to the conventional Pap smear."
"With the renewed Quest agreement, Cytyc now has contracts with clinical labs across the
country that process up to 40 million, or 80 percent, of the approximately 50 million Pap tests
performed in the U.S. each year," said King. "The company's challenge going forward is to
drive conversion of these labs from the conventional Pap smear to Cytyc's ThinPrep for cervical
disease detection."
"In our opinion, Cytyc should meet our fourth-quarter 1999 expectations of $24.6 million in
revenue associated with earnings-per-share of $0.18 as reported, $0.11 fully taxed," said King.
"By the end of 2000, we look for shares of Cytyc to trade at 40 times our fully taxed 2001
earnings-per-share estimate of $1.95, yielding a $78 price target."
Clients interested in receiving more information should contact their salesperson at (415)
781-9700.
$78 actually seems low.
Jack |
