On Monday, Citi analysts reiterated a Buy rating and a price target of $75.00 on Bruker (NASDAQ:BRKR) Corporation shares (NASDAQ:BRKR), which currently trades at $62.38.
According to InvestingPro data, the stock appears overvalued at current levels, with analyst targets ranging from $60 to $85. The reiteration follows Bruker's announcement of their preliminary fourth-quarter 2024 revenue, which is expected to be between $970 million to $980 million.
This figure surpasses the consensus estimate of $962 million, building on the company's strong 15% revenue growth over the last twelve months. The company's BSI B2B bookings growth for the quarter was described as solid, a sentiment echoed from a December conference where Bruker's management highlighted a notable Nuclear Magnetic Resonance (NMR) instrument placement.
In addition to the fourth-quarter performance, Bruker provided a glimpse into their 2025 outlook, anticipating constant currency (CC) revenue growth in the upper-mid single digits. This is in line with market growth projections in the low single digits. While specific fourth-quarter earnings per share (EPS) guidance was not released, Citi analysts expect foreign exchange (FX) margin and EPS tailwinds to push these figures above the consensus.
InvestingPro analysis reveals the company maintains a "GOOD" overall financial health score, with particularly strong marks in profitability metrics. Subscribers can access 6 additional ProTips and comprehensive financial analysis through the Pro Research Report.
The commentary from Bruker's management at the December conference was also positive, suggesting confidence in instrument orders and comfort with the prospect of mid-teen percentage EPS growth for 2025, even without a significant recovery in end markets. With a current P/E ratio of 29.96 and sufficient cash flows to cover interest payments, the company demonstrates solid financial fundamentals.
The combination of strong preliminary results for the fourth quarter of 2024 and the initial growth commentary for 2025 are seen as positive indicators for Bruker's performance as the company moves into the new year.
In other recent news, Bruker Corporation has been dealing with a legal setback involving a patent infringement case against its NanoString business unit, with damages confirmed at approximately $31.6 million.
The company intends to appeal the decision. In terms of financial performance, Bruker reported a year-over-year revenue increase of 16.4% in Q3 2024, reaching $864.4 million. However, full-year 2024 guidance was adjusted downwards due to slower recoveries in the biopharma sector and Chinese market demand.
Analysts' ratings for Bruker have varied. Guggenheim initiated coverage with a Buy rating and a price target of $72.00, Goldman Sachs upgraded the stock from Sell to Neutral with a price target of $60.00, and UBS assumed coverage with a Neutral rating and a price target of $66.00.
The company also launched the Dimension Nexus atomic force microscope (AFM), an addition to its Dimension AFM product line. This new instrument is expected to benefit a wide range of research applications due to its compact, upgradable design and large-sample analysis capacity.
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