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On Thursday, Stifel analysts adjusted their outlook on Bruker Corporation (NASDAQ:BRKR), a scientific instrument manufacturer with a market capitalization of $6.3 billion, reducing the price target from $57.00 to $48.00 while maintaining a Hold rating on the stock. The revision follows Bruker’s pre-announcement of its quarterly results, which shifted the market’s attention to the company’s revised perspective on its 2025 projections. According to InvestingPro data, the stock currently trades at $41.53, with analyst targets ranging from $45 to $72.
The updated guidance reflects a more conservative growth expectation due to deteriorating academic trends and the impact of tariffs. Management now anticipates growth to be relatively flat for the current year, despite achieving 13.56% revenue growth in the last twelve months. However, they also believe that certain actions can mitigate the effects of tariffs and potentially establish a lower bound for earnings. InvestingPro analysis shows the company maintains a GOOD financial health score, with five analysts recently revising earnings estimates upward.
Stifel’s commentary suggests that if Bruker can achieve high-teens earnings per share (EPS) growth by 2026, the company could present a compelling valuation case. This scenario hinges on the possibility of significant multiple expansion if market conditions improve, without pushing the stock’s valuation to unreasonable levels.
The firm remains neutral on Bruker, opting to observe how the situation with academic funding unfolds. Despite the cautious stance, Stifel acknowledges that investors with a long-term view might start showing increased interest in the company, given the potential for future growth and valuation improvements.
In other recent news, Bruker Corporation announced its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.47, compared to a forecast of $0.42. The company reported revenues of $801.4 million, surpassing the anticipated $764.72 million, marking an 11% year-over-year increase. Despite these positive results, Bruker maintains its full-year 2025 revenue guidance between $3.48 billion and $3.55 billion, with non-GAAP EPS expected to range from $2.40 to $2.48. The company faces challenges in the academic government market, with an expected decline of 20-25% in 2025. Analysts from Leerink Partners and Bank of America have raised concerns about U.S. policy changes and tariffs impacting Bruker’s operations. In response, Bruker is implementing cost management and supply chain reengineering initiatives to mitigate these headwinds. Despite these challenges, the company remains optimistic about its strategic direction and potential upside in the latter half of 2025.
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