Evercore ISI lowers Azenta stock price target to $33 on order delays

Published 05/08/2025, 16:24
Evercore ISI lowers Azenta stock price target to $33 on order delays

Investing.com - Evercore ISI has reduced its price target on Azenta, Inc. (NASDAQ:AZTA) to $33.00 from $35.00 while maintaining its "In Line" rating on the stock. According to InvestingPro data, Azenta’s stock currently trades at $27.44, significantly below its 52-week high of $60.60, with analysis suggesting the stock may be undervalued at current levels.

The price target adjustment follows Azenta’s fiscal third-quarter performance, which was impacted by pharmaceutical industry caution in gene synthesis and pushouts of orders in both the company’s Consumer & Industrial segment and cryogenic storage business.

Despite these challenges, Azenta delivered earnings that beat expectations, with strong margin execution that allowed the company to exceed Street estimates despite missing revenue targets.

Evercore ISI notes that management projects approximately 5% revenue growth in the fourth quarter, compared to a 2% decline in the third quarter, based on normal seasonality patterns and the benefit of delayed third-quarter orders shifting into the fourth quarter.

The new $33 price target represents approximately 2 times average calendar year 2025/2026 enterprise value to revenue, 3 times enterprise value to gross profit, and a 4.4% free cash flow yield, according to the research firm. With a current market capitalization of $1.26 billion and an EV/EBITDA multiple of 36.2x, investors seeking deeper insights can access comprehensive valuation metrics and 8 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Azenta Inc. reported its second-quarter fiscal year 2025 earnings, which showed a revenue of $143 million, slightly exceeding forecasts. However, the company’s earnings per share (EPS) came in at $0.05, falling short of the expected $0.08. In addition to financial results, Azenta announced the resignation of Violetta Hughes, its Vice President and Chief Accounting Officer, effective August 6, 2025. The company clarified that Hughes’s departure is voluntary and unrelated to any disagreements over company operations or financial matters. Meanwhile, Fresenius Medical (TASE:BLWV) Care (NYSE:FMS)’s research division, Frenova, has partnered with Nephronomics and GENEWIZ by Azenta Life Sciences to enhance genomic analysis in kidney disease research. This collaboration will focus on Frenova’s My Reason genomics research program, which aims to expand its participant registry to 50,000 individuals. These developments reflect ongoing strategic initiatives within both companies.

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