BoA Keeps 'Buy' on Cytyc
Banc of America keeps buy on Cytyc (CYTC ).
Analyst Kurt Kruger says Cytyc and its soon-to-be-acquired partner Digene Corp. receive a positive recommendation for approval for a test that should contribute significant revenue to Cytyc in 2003 and beyond. Encouraged by this recommendation, he thinks final approval could occur within six to nine months. Kruger raised the 2003 revenue estimate by $20 million, and raised the $0.95 EPS to $0.99. He says the path to significant revenues is by no means easy, but points out Cytyc did it once with its first liquid based Pap Smear, five years and $300 million ago. Kruger has a $28 target.