Quidel Corporation (Nasdaq: QDEL) develops, manufactures, and markets point-of-care, rapid diagnostic tests for the detection and management of a variety of medical conditions and illnesses. Its products are used to identify a pregnancy, and detect infectious diseases, autoimmune diseases, and osteoporosis, among other conditions.
Analysts like Quidel's flu testing market share, and solid positions in strep and pregnancy detection. Analysts expect 15-20% revenue growth in 2008, after a double-digit increase in 2007.
Operating costs are reasonable; margins are solid and/or improving. The Reuters FY 2008/FY 2009 EPS consensus estimates for QDEL are $0.61 to $0.75.
The risks? Analysts are keeping an eye on Quidel's core component costs and marketing expenses.
The First Call mean rating for QDEL is: Buy [5 firms]. Mean 2008 target: $23 [high: $27, low: $19].
Stock Analysis: Quidel Corp. is a high-risk stock not suitable for moderate-risk or low-risk investors. Investors with an investment horizon longer than 3 years should be rewarded from QDEL's shares. Sell/Stop Loss if you were to purchase shares in this company: $7.
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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