U.S. stocks edge higher; solid earnings season continues
Investing.com - Stifel has reduced its price target on Bruker (NASDAQ:BRKR) to $40.00 from $48.00 while maintaining a Hold rating on the scientific instruments company. The stock, currently trading at $34.72, has declined 17.4% in the past week alone. According to InvestingPro data, seven analysts have recently revised their earnings estimates downward for the upcoming period.
The price target cut follows Bruker’s second-quarter earnings miss and revised outlook, which Stifel attributes to a combination of expected and unexpected factors affecting the company’s performance.
While weak academic and government spending was anticipated, Stifel notes that biopharma softness contrasts with the general tone from other tools companies this quarter, and greater-than-expected tariff headwinds surprised many investors.
In response to these challenges, Bruker is implementing $100-120 million in cost cuts to partially protect its bottom line for 2025 and ensure earnings per share recovery in fiscal year 2026.
The company has reset its EPS guidance to approximately $2.00 for 2025, and management has provided commentary on 2026 top-line scenarios that include potential no-growth outcomes.
In other recent news, Bruker Corporation reported its second-quarter earnings for 2025, which fell short of expectations. The company announced an earnings per share (EPS) of $0.32, missing the projected $0.42, resulting in a negative surprise of 23.81%. Additionally, Bruker’s revenue was reported at $797.4 million, slightly below the anticipated $812.81 million, marking a 1.9% miss. Following these results, Barclays (LON:BARC) adjusted its price target for Bruker to $43 from $46, maintaining an Overweight rating. This adjustment was influenced by the company’s soft order numbers, which had been anticipated. Similarly, JPMorgan lowered its price target for Bruker to $50 from $60, while also maintaining an Overweight rating. Despite these adjustments, JPMorgan highlighted Bruker’s strong 2024 guidance and 2027 targets as indicators of potential continued outperformance. These developments reflect the mixed sentiments among analysts regarding Bruker’s future performance.
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