Quidel stock forecast as shares spike 6% on increased Omicron testing needs

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On Thursday, Quidel Corp (NASDAQ:QDEL) shares gained nearly 4%, extending Wednesday’s gains to over 6%. The stock has been on an upward trajectory since revealing its covid-testing kit could detect the Omicron variant. The US government is asking for more at-home testing to help mitigate the highly transmissible version.

However, the FDA has warned that, although Covid antigen tests can detect the Omicron variant, there may also be some false negatives. However, that has not stopped home-based covid testing kit providers from surging amid the increasing spread of the pandemic.

Cue Health Inc. (NASDAQ:HLTH) and Lucira Health Inc. (NASDAQ:LHDX) have spiked since Christmas week, rallying more than 15% each, before pulling back recently.

Is it safe to buy Quidel shares?

Although Quidel stock has bounced back in the last two days, the stock is still down more than 23% since spiking more than 30% between the 10th and 20th of December.

As a result, the stock has plummeted to trade at an attractive forward P/E ratio of 6.52, making it a compelling option for value investors.

In addition, analysts expect its EPS to grow by more than 970% this year before rising at an average annual rate of about 7.2% over the next five years.

Therefore, growth investors could also be interested.

Source – TradingView

Technically, Quidel shares seem to be trading within a sharply descending channel formation in the intraday chart. However, the stock recently bounced back, creating an opportunity to buy.

Therefore, investors could target extended gains at about $138.81, or higher at $144.97, while $126.50 and $119.81 are crucial support zones.

The post Quidel stock forecast as shares spike 6% on increased Omicron testing needs appeared first on Invezz.

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