QuidelOrtho (QDEL) has been navigating a challenging market in recent months, facing headwinds that have impacted its share price. Recent performance offers investors reason to revisit the company’s fundamentals as they evaluate longer-term prospects.
See our latest analysis for QuidelOrtho.
QuidelOrtho’s 14% share price gain over the past month hints at shifting market sentiment; however, the bigger picture remains challenging given a 1-year total shareholder return of -21% and a steep three-year loss. While momentum has picked up recently, long-term holders are still waiting for a meaningful turnaround.
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With shares trading at a hefty discount to analyst price targets, but longer-term returns still deeply negative, investors have to ask whether QuidelOrtho is undervalued at current levels or if the market is already accounting for any future growth potential.
With QuidelOrtho’s fair value calculation at $40.33 and a last close of $30.51, the narrative suggests there’s significant upside potential if the company meets its projected milestones. Here’s a core insight from the most widely followed narrative driving this view.
Acquisition of LEX Diagnostics and the planned commercialization of its rapid molecular point-of-care platform addresses the trend toward fast, decentralized testing and is likely to increase recurring revenues and enhance margins as high-value, high-velocity diagnostic solutions become more prevalent.
Curious what numbers could justify this big premium? The full narrative lays out a bold path that includes profitability targets and a future multiple that is out of step with today’s reality. Don’t miss the surprising projections and assumptions that power this price target.
Result: Fair Value of $40.33 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent declines in COVID-related revenues and challenges from discontinued product lines could undermine near-term gains. These factors may test the company’s turnaround narrative.
Find out about the key risks to this QuidelOrtho narrative.
If you see the numbers differently or want to shape your own perspective, you can dive into the data and build your own narrative in just a few minutes. Do it your way
A great starting point for your QuidelOrtho research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
Read More: Evaluating Whether Shares Are Undervalued After Recent Shift in Market
