NEW YORK (GenomeWeb) – Piper Jaffray has downgraded shares of Quidel to a Neutral rating from Overweight, citing the "limited upside" the company is likely to see in the 2016-2017 flu season.
"We are forecasting a 17 percent 'stronger' 2016-17 flu season compared to the prior year," Piper Jaffray analyst William Quirk wrote in a note to investors on Friday. "However, we are already forecasting Quidel's influenza sales up 10 percent. While our forecast suggests [approximately] $6 million in upside to our estimates, we believe this is not significant enough to materially move the stock."
About 45 percent of Quidel's revenues come from influenza products, Quirk added. Given that the company's stock typically trades on the strength of the flu season, and that Piper Jaffray's estimates already include the most upside Quidel is likely to see this season, "we believe there is a limited trade on Quidel into the flu season," he noted.
Quirk left the $22 price target for Quidel's shares unchanged.
Quidel's shares were down less than 1 percent to $20.91 in morning trading on the Nasdaq.