QuidelOrtho Surges Ahead: Operational Turnaround Unlocks Massive Upside

QuidelOrtho Corporation, a leading diagnostics company, is poised for a remarkable turnaround after facing several headwinds in recent years. As of July 25, 2025, the company's stock was trading at $27.39, with a trailing and forward P/E of 9.16 and 11.22, respectively.

The company's new CEO, Brian Blaser, formerly of Abbott, has been instrumental in restoring operational discipline, cutting integration costs, and terminating the Savanna program, which had been a significant EBITDA drag. The acquisition of Ortho Clinical Diagnostics has brought a highly recurring laboratory diagnostics business, anchored by long-term reagent contracts and a 2,000-analyzer installed base, that is now driving mid-to-high single-digit organic growth, augmented by inflation-linked pricing and market share gains.

QuidelOrtho's transfusion medicine and point-of-care segments also provide additional recurring revenue, while the acquisition of LEX Diagnostics positions the company's molecular diagnostics division for profitable growth. Recent results confirm the inflection, with laboratories and point-of-care segments growing organically by 7% and 8%, respectively, in Q1-25, and margins expanding by 450 basis points year-over-year.

The company is targeting 200 basis points of annual EBITDA expansion, reaching 26-27% by 2028, and free cash flow conversion exceeding 50% as integration costs roll off and leverage declines from over 4x to around 3x by 2026. With the stock down 30% due to unfounded Chinese tariff fears, QuidelOrtho presents an asymmetric risk/reward profile, trading at a 13-14% 2026E free cash flow yield and offering the potential for a tripling of the share price by applying a conservative 10x 2028E EBITDA multiple.