EU and US could reach trade deal this weekend - Reuters
Tuesday, Evercore ISI began coverage on shares of Bio-Techne Corp (NASDAQ:TECH), assigning an Outperform rating and setting a price target of $75. The new target indicates approximately a 20% potential upside from the stock’s current price of $62.58. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with analyst targets ranging from $68 to $95.
Bio-Techne, with precise revenue of $1.196 billion and market capitalization of $9.89 billion, demonstrates impressive financial strength with a gross profit margin of 66.22%. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 3.94 and has sustained dividend payments for 18 consecutive years. Evercore ISI highlighted the company’s strong foundational business in proteins, antibodies, and reagents, as well as its growth verticals which include cell and gene therapy, proteomic analytical instruments, spatial biology, and precision diagnostic tools.
Analysts at Evercore ISI project that Bio-Techne can sustain growth that outpaces the market by more than 500 basis points, with double-digit top-line growth. They anticipate an acceleration in growth in the coming years and outline a path to approximately 38% operating margins by fiscal year 2028, driven by a beneficial product mix, improvements from dilutive mergers and acquisitions, and contributions from Wilson Wolf.
Despite potential near-term headwinds from budget freezes in academic markets, Evercore ISI believes the recent 20% decline in Bio-Techne’s stock price is an overreaction. The firm predicts that the company will navigate through longer-term funding challenges and views the current volatility as an attractive entry point for investors.
The price target of $75 is based on approximately 30 times the calendar year 2025 EBITDA or around 43 times the price-to-earnings ratio, adjusted for stock-based compensation. This valuation reflects Evercore ISI’s confidence in Bio-Techne’s ability to deliver high-teens percentage earnings per share growth. InvestingPro subscribers can access 10 additional key insights about Bio-Techne’s valuation and financial health, along with comprehensive Pro Research Reports that transform complex Wall Street data into actionable intelligence.
In other recent news, Bio-Techne Corporation reported its Q4 2024 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.42, compared to the forecast of $0.39. The company’s revenue also surpassed projections, reaching $297 million against the anticipated $286.14 million. This performance marks a 4% year-over-year revenue growth, demonstrating strong business operations. Additionally, Bio-Techne has been ordered to pay approximately $37 million to former CEO Charles R. Kummeth after an arbitration ruling related to stock options. The decision requires Bio-Techne to compensate Kummeth based on the average stock price before the original expiration date of the options.
Bio-Techne also launched the GMP TcBuster, a transposase mRNA for cell therapy development, which could streamline gene editing in therapies without using viral vectors. Furthermore, the company introduced the Leo System, an advancement in automated protein analysis, which quadruples the throughput of its predecessor. The Leo System is designed to enhance protein quantitation and is equipped with advanced software for regulatory compliance. These recent developments, including product launches and legal outcomes, indicate Bio-Techne’s ongoing efforts in innovation and addressing financial obligations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.