RBC Capital Maintains a Buy Rating on QuidelOrtho Corporation (QDEL), Sets a $60 PT

QuidelOrtho Corporation (NASDAQ:QDEL) is one of the best undervalued medical device stocks to buy now. On June 30, RBC Capital analyst Conor McNamara maintained a Buy rating on QuidelOrtho Corporation (NASDAQ:QDEL) and set a price target of $60.00.

The company has strategic plans to drive growth in Molecular Diagnostics. On June 3, it announced its intention to acquire full ownership of LEX Diagnostics for consideration at closing of approximately $100 million. The acquisition is dependent upon the US Food and Drug Administration (FDA) clearance, which is expected in late 2025 or early 2026.

QuidelOrtho Corporation (NASDAQ:QDEL) originally invested in LEX Diagnostics in December 2023, with an initial investment of $20 million and an additional milestone-related investment of $10 million in 2024.

The acquisition can accelerate the company’s entry and bolster its participation in the approximately $9 billion molecular diagnostics market. Since it is one of the fastest-growing segments, management expects it to position QuidelOrtho Corporation (NASDAQ:QDEL) to capitalize on the growing demand for rapid, point-of-care molecular testing.

QuidelOrtho Corporation (NASDAQ:QDEL) is an in vitro diagnostics company that develops and manufactures diagnostics products.

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Disclosure: None. This article is originally published at Insider Monkey.