TSX drops after Canadian index edges higher in prior session
Investing.com - Jefferies upgraded Azenta, Inc. (NASDAQ:AZTA) from Hold to Buy and raised its price target to $38.00 from $30.00, citing an attractive setup heading into 2026. The new target represents a 28% upside from Azenta’s current price of $29.79, though the stock has taken a significant hit, dropping 8% over the past week.
The upgrade comes despite what Jefferies describes as a "tricky" fourth quarter with a steep quarter-over-quarter ramp expected. Looking beyond near-term challenges, the firm projects low to mid-single-digit core growth and approximately 300 basis points of adjusted EBITDA expansion for Azenta in 2026. InvestingPro data shows analysts expect the company to return to profitability this fiscal year with a forecasted EPS of $0.49, despite not being profitable over the last twelve months.
Jefferies highlighted Azenta’s healthy biopharma exposure, which represents more than 50% of the company’s business, along with multiple growth drivers including innovation, pricing, and improved attachment rates. This focus appears to be yielding results, with the company posting revenue of $668.82 million and 12.46% revenue growth in the last twelve months.
The firm also noted potential upside from mergers and acquisitions, pointing to Azenta’s substantial cash position exceeding $550 million, equivalent to approximately $12 per share. InvestingPro analysis confirms the company holds more cash than debt on its balance sheet, with a healthy current ratio of 2.76 and total debt of just $52.63 million.
According to Jefferies, Azenta’s current valuation at roughly 11x EBITDA offers room for multiple expansion compared to peers trading in the mid-teens, with confidence in the company’s mid-term opportunity expected to build following its December 10 investor day. Current InvestingPro metrics show the stock trading at an EV/EBITDA of 28.16 but at a Price/Book of just 0.86. Investors can access Azenta’s comprehensive Pro Research Report, along with additional financial insights for over 1,400 US equities, through the InvestingPro platform.
In other recent news, Azenta Inc. reported its third-quarter 2025 earnings, exceeding analyst expectations with a non-GAAP earnings per share (EPS) of $0.19, compared to the anticipated $0.13. However, the company experienced a revenue shortfall, recording $144 million against the expected $149.51 million. Despite the revenue miss, Raymond James upgraded Azenta from Market Perform to Outperform, setting a price target of $35.00. The upgrade was attributed to margin improvements and the belief that the stock may have reached a potential bottom. These developments come as Azenta navigates broader market pressures and investor concerns. Raymond James noted that the company’s fiscal third-quarter results were "noisy," suggesting complexities in the financial landscape. This upgrade reflects a positive outlook from Raymond James, despite the mixed earnings report.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.