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Bernstein SocGen Group initiated coverage on Tecan Group AG (SWX:SIX:TECN) with an underperform rating and a price target of CHF165.20 on Tuesday.
The research firm identified Tecan as a global leader in laboratory automation and robotics but highlighted several challenges facing the company. These challenges include a general slowdown in instrument sales and margin pressures across both its Life Sciences and Partnering Business divisions.
Bernstein noted that while the laboratory automation industry remains robust and fragmented with large diversified players dominating the space, Tecan’s position as a niche player may be problematic. The firm’s analysis found no evidence of major changes in sector dynamics that could significantly alter the positive industry outlook.
The research firm expressed concern about Tecan’s scale relative to competitors, stating: "It is increasingly clear, in our view, that Tecan is becoming sub-scale relative to larger players."
Tecan operates in growing markets, but Bernstein analyst Delphine Le Louet’s assessment suggests the company’s current challenges outweigh its market position advantages, leading to the underperform rating.
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