Needham analyst Mike Matson downgraded Hologic (HOLX) to Hold from Buy without a price target.

The company is seeing a "massive benefit" from COVID-19 testing, but testing sales will begin to decline in 2021, Matson tells investors in a research note. While COVID will bring "sustainable benefits," investors are mostly ignoring Hologic's COVID-19 testing "windfall," and vaccine developments will further weigh on sentiment, says the analyst. Matson thinks Hologic shares should be valued on the company's post-COVID-19 earnings power. His "best guess at this point" is that the company's post-COVID-19 earnings power per share is $3.68 in fiscal 2022.

On this valuation, Matson downgrades the shares to Hold.