Jefferies Sees Renewed Value in QuidelOrtho as Diagnostics Outperform

In a decisive move that’s reverberating through the in-vitro diagnostics sector, Jefferies has upgraded QuidelOrtho Corporation from Hold to Buy, raising its price target to $44. With QuidelOrtho’s stock surging over 33% in a single session on strong quarterly results, the upgrade points to a compelling double-digit upside for investors at a critical industry inflection point.

For self-directed investors, analyst upgrades—especially from highly influential firms—often serve as inflection points, catalyzing momentum, validating financial improvements, or signaling a sector-wide re-rating. In QuidelOrtho’s case, the timing, magnitude, and context of Jefferies’ call merits a deeper look, as the stock rebounds sharply from its 52-week lows and sector tailwinds intensify.

Key Takeaways:

• Potential Upside: Jefferies’ new $44 price target implies a potential 27% upside from QuidelOrtho’s current price of $34.57.

• Stock Price Surge: QDEL rallied 33.7% on the day of its Q1 earnings beat—one of its strongest single-day performances in years—on volume nearly double the average.

• Earnings Beat: Q1 results topped estimates, with EPS of $0.74 (vs. $0.58 consensus) and robust recurring revenue growth.

• Sector Dynamics: The diagnostics sector is seeing renewed investor interest as labs and point-of-care testing demand rebounds post-pandemic.

• Analyst Influence: Jefferies is a major Wall Street player in healthcare coverage; their upgrade signals institutional confidence and could attract further buy-side flows.

Jefferies’ Upgrade: Why It Matters Now

The Analyst’s Perspective & Firm Profile

Jefferies, a global investment bank with deep expertise in healthcare and diagnostics, is recognized for its influential sector coverage and institutional investor reach. The firm’s research team has consistently identified inflection points in medtech, and their upgrades often precede institutional repositioning. By moving QDEL to Buy with a $44 target, Jefferies not only signals conviction in QuidelOrtho’s turnaround but also positions the stock as a core recovery play in diagnostics.

This upgrade follows a period of heavy underperformance for QuidelOrtho, which has traded as low as $23.77 in the last year. The decisive earnings beat and subsequent upgrade from a top-ranked firm provide a tangible catalyst for sentiment and re-rating.

QDEL’s Turnaround: Financials and Stock Dynamics

Earnings Beat Restores Momentum

QuidelOrtho’s Q1 2025 results decisively beat Wall Street expectations:

• EPS: $0.74 (vs. $0.58 consensus, $0.44 YoY)

• Revenue: Strong recurring revenue driven by lab and point-of-care testing

• Operating Leverage: Margin expansion as legacy integration costs subside

The company’s business model—centered on innovative in-vitro diagnostics for point-of-care, clinical labs, and transfusion medicine—has proven resilient, as recurring contracts and lab demand offset cyclicality in rapid test sales.

Stock Price Action: A Volatility Inflection Point

The post-earnings surge (+33.7%) on nearly 2 million shares traded far exceeded QDEL’s typical volume (1 million average), marking a technical and sentiment-driven breakout. Notably:

• Current Price: $34.57 (up from $25.85 pre-earnings)

• 52-Week Range: $23.77 – $49.45

• Recent RSI: 73.85—now technically overbought, but reflective of momentum reversal

• Technical Breakout: Price moved above both 20-day EMA ($28.62) and upper Bollinger Band ($31.68)

Despite a challenging year (106 up days vs. 142 down days), the recent volume and price expansion signal an inflection. The stock’s Sentiment Ratio, while previously bearish, is turning as institutional upgrades and earnings beats converge.

One-Year Price and Volume Summary

Sector Backdrop: Diagnostics Re-Emerges as a Growth Story

The in-vitro diagnostics sector has seen a post-pandemic recalibration, with investor focus shifting from COVID windfalls to recurring revenue and lab-based innovation. QuidelOrtho’s emphasis on high-value lab contracts and recurring supply revenues aligns with this trend, positioning it to benefit from secular growth in clinical diagnostics and disease surveillance.

Potential Upside: How Much Room Remains?

With QDEL at $34.57 and Jefferies’ target at $44, the implied upside is roughly 27%. This is particularly notable after such a large single-day move, suggesting that Jefferies sees further room for multiple expansion, margin improvement, or both.

For investors, this level of upside—especially following a pronounced reversal—suggests the stock is still in the early innings of a broader recovery, rather than simply reacting to a single earnings event.

Recent News: Earnings, Analyst Calls, and Sector Rotation

• Q1 2025 Earnings Call: Management cited Labs business strength and recurring revenue as key drivers (transcript).

• Earnings Beat Coverage: Zacks and Business Wire highlighted the company’s outsized earnings and revenue surprise, noting sequential improvement in margins and recurring revenue strength.

• Analyst Participation: The Q1 call featured multiple top-tier analyst questions (RBC, Citi, JPMorgan), highlighting renewed Wall Street engagement.

Analyst Confidence: Weight of the Jefferies Upgrade

Jefferies’ upgrade carries significant weight given its sector expertise and the timing—immediately following an earnings beat and technical breakout. The firm’s call is likely to attract additional institutional buyers, rerate QDEL’s peer multiples, and catalyze renewed sell-side coverage.

In summary: Jefferies’ bullish turn on QuidelOrtho Corporation comes at a pivotal sector and company inflection point, with improving financials, technical momentum, and sector tailwinds opening the door to further upside. While the stock’s sharp rally invites near-term volatility, the combination of recurring revenue growth, margin improvement, and blue-chip analyst conviction makes QDEL a name to watch in the diagnostics rebound.