QuidelOrtho upped to neutral at UBS on current valuation, diagnostics survey

Michael M. Santiago

• UBS upgraded QuidelOrtho (NASDAQ:QDEL) to neutral from sell as the company's Q3 2022 earnings pre-announcement had revenues come in ahead of the firm's forecast.
• The firm has an $86 price target (~15% upside based on Thursday's close).
• Analyst Elizabeth Garcia said that while COVID-19 testing will drive higher than expected margins in the quarter, margins should narrow in 2023 and 2024 as COVID testing falls off.
• UBS' Evidence Lab Survey indicates that immunoassay testing, clinical chemical testing, immunohematology, and coagulation testing will see growth into next year.
• Garcia added that Savanna, a near-patient molecular testing platform, could launch as soon as 1H 2023.
• In September, Citi initiated QuidelOrtho (QDEL) at neutral.