What Happened?
Shares of healthcare diagnostics company QuidelOrtho (NASDAQ: QDEL) fell 4.4% in the morning session after Citigroup analyst Patrick Donnelly downgraded the stock to 'Neutral' from 'Buy' and lowered the price target. The firm cut its price projection for QuidelOrtho to $33 from $40, a reduction of 17.5%. This adjustment by Citigroup reflected a change in the firm's outlook on the company's stock performance. The downgrade and price target cut highlighted concerns about QuidelOrtho's near-term growth prospects.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy QuidelOrtho? Access our full analysis report here.
What Is The Market Telling Us
QuidelOrtho’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 2.6% after news of a new government prescription drug policy and a landmark deal with Pfizer eased investor concerns over stricter pricing regulations.
The pharmaceutical and biotech sectors rallied for a second consecutive day following the announcement of a direct-to-consumer prescription drug selling website.
A key driver for the optimism is a deal between Pfizer and the administration, allowing the company to avoid potential tariffs by reducing drug prices. This outcome is seen as a relief for the industry, which had braced for more severe measures. The move has reduced uncertainty in the sector, with other major players like Eli Lilly reportedly in negotiations for a similar agreement, signaling a potentially favorable new landscape for drugmakers.
QuidelOrtho is down 37.2% since the beginning of the year, and at $28.27 per share, it is trading 40.6% below its 52-week high of $47.61 from January 2025. Investors who bought $1,000 worth of QuidelOrtho’s shares 5 years ago would now be looking at an investment worth $101.74.
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