SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : QDEL - Quidel more quick diagnosis
QDEL 27.27-0.9%11:19 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert Busse who wrote (362)1/28/1997 8:00:00 AM
From: Mike Relyea   of 1693
 
Bob,

I think there's a good chance Van Kasper, Principal or another brokerage will issue a strong buy recommendation for Quidel. Consider the following:

Quidel's 3Q sales exceeded Van Kasper's estimate by 8% and Principal's by 10.4%.

Quidel's 3Q earnings exceeded Van Kasper's estimate by 160% and Principal's by 266%.

Van Kasper estimates Quidel's 4Q sales will increase 0.7% over 3Q sales, and Principal estimates an 8.7% increase. Considering Van Kasper's estimate, the lower of the two, then Quidel's 4Q earnings should be at least $0.08, the same as its 3Q. This would give Quidel a $0.20 FY97 EPS.

Van Kasper estimated its $6 near term fair value for Quidel by multiplying a 30 P/E times its (Van Kasper's) estimated FY 98 earnings of $0.20 per share; however, it looks like Quidel may come through with $0.20 in FY 97. Van Kasper estimated FY 98 earnings growth at 67%. If we apply the same estimate to a FY 97 $0.20 EPS, then FY 98's EPS will be $0.33. Multiply this by a 30 P/E, and we end up with a $10 near term fair value for Quidel.

Van Kasper's 19 November 1996 report doesn't take into account the recent MedPartners' and Procter & Gamble deals, which are sure to add to Quidel's earnings.

I wouldn't be surprised to see a brokerage issue a strong buy recommendation for Quidel, since it appears to me to be undervalued by 50% or more.

Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News