The COVID-19 environment may boost Qiagen's (NYSE:QGEN) new products, like QIA-STAT and NeuMoDx, according to BofA Securities.
The Qiagen Analyst: Derik de Bruin reinitiated coverage of with a Buy rating and a price target of $59.
The Qiagen Thesis: Although Thermo Fisher Scientific Inc. (NYSE:TMO) raised its offer to 43 euros per share, the deal to acquire Qiagen fell through as shareholders still considered the price too low, de Bruin said in the re-initiation note.
“We have been very critical of QGEN given their track record of uneven capital deployment, lack of transparency, and missed expectations,” the analyst wrote in a note.
He added that although execution risks remain, Qiagen’s new products may be boosted by COVID-19.
“With a new CEO in place and new products in the portfolio, QGEN has the opportunity to reinvent itself, especially when it comes to deploying capital, further reducing the cost structure, and delivering on expectations,” said de Bruin.
QGEN Price Action: Shares of Qiagen had risen by 1.92% to $54.22 at the time of publication Tuesday.