Azenta stock upgraded to Outperform by Raymond James on margin improvement

Published 06/08/2025, 09:50
Azenta stock upgraded to Outperform by Raymond James on margin improvement

Investing.com - Raymond (NSE:RYMD) James upgraded Azenta, Inc. (NASDAQ:AZTA) from Market Perform to Outperform and established a price target of $35.00. According to InvestingPro data, the stock appears undervalued after falling over 50% in the past six months, with a current price of $26.90.

The upgrade follows Azenta’s fiscal third-quarter results, which Raymond James described as "noisy" but suggested the stock had reached a potential bottom at current levels. InvestingPro analysis reveals the stock is in oversold territory, with the company maintaining a strong balance sheet holding more cash than debt.

Raymond James believes a business in Azenta’s sector should command a double-digit EBITDA multiple when generating modest revenue growth with the company’s level of margin improvement.

The firm noted its long-standing positive view of Azenta’s SRS business and cited potential catalysts including timing dynamics in C&I and improving sentiment around NIH funding as paths to better performance.

Raymond James also highlighted that cost-saving and efficiency initiatives appear to be taking hold under Azenta’s refreshed management team, with the firm’s model projecting double-digit growth despite some adjustments to expectations.

In other recent news, Azenta Inc. reported its third-quarter 2025 earnings, delivering an earnings per share (EPS) of $0.19, which exceeded analyst expectations of $0.13 by 46.15%. However, the company experienced a revenue shortfall, recording $144 million in revenue compared to the anticipated $149.51 million. These developments reflect mixed signals for investors, with an EPS beat but a revenue miss. Despite the positive earnings surprise, the revenue miss may have contributed to investor concerns. The earnings results highlight the challenges Azenta faces amid broader market pressures. No analyst upgrades or downgrades were reported following these earnings. These recent developments are crucial for investors monitoring Azenta’s financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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