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On Thursday, Revvity Inc (NYSE:RVTY) received an upgrade in its stock rating from UBS, moving from Neutral to Buy, though the firm reduced the company’s price target to $115 from $145. The adjustment by UBS analysts comes with a positive outlook on the company’s potential for differentiated growth compared to its peers. The analysts anticipate that Revvity’s growth drivers will stand out in the market. With a market capitalization of $11.2 billion and a perfect Piotroski Score of 9 according to InvestingPro, the company demonstrates strong financial health fundamentals. The stock currently trades near its 52-week low of $88.53, potentially presenting an opportunity for investors.
In their statement, UBS analysts highlighted several factors that could contribute to Revvity’s growth. They noted the company’s self-improvement efforts in its reagents business, which accounts for approximately 25% of its sales, as a positive influence. Additionally, the growth in autoimmune testing, representing around 15% of sales, is expected to bolster the company’s performance. The company maintains strong profitability with a 56.25% gross margin and is expected to grow its net income this year, according to InvestingPro analysis, which offers 12 additional key insights about the company’s financial outlook.
The analysts also pointed out that Revvity’s limited exposure to demand pressures in the U.S. academic and government sectors, which make up 5% of its business, is likely to be advantageous. This aspect could help the company navigate market challenges more effectively than some of its competitors.
Furthermore, UBS analysts addressed concerns regarding Revvity’s involvement in the China diagnostics market, which represents about 9% of the company’s sales. They expressed the belief that investor worries about the company’s China diagnostics operations are exaggerated and do not reflect the company’s true potential in that market.
UBS’s revised price target of $115, despite being lower than the previous target of $145, accompanies the upgraded rating and reflects a nuanced view of Revvity’s market position and growth prospects. The analysts’ commentary underscores their confidence in the company’s ability to outperform within its sector.
In other recent news, Revvity Inc. reported a robust first-quarter 2025 performance, exceeding Wall Street expectations with an earnings per share (EPS) of $1.01 against a forecast of $0.95, and revenue of $665 million, surpassing the anticipated $661.92 million. Despite facing macroeconomic challenges, Revvity’s software business achieved over 20% organic growth, and its reproductive health sector showed promising results. The company is addressing potential margin pressures from tariffs by expanding manufacturing capacity, a strategy expected to mitigate most impacts by the second half of 2025.
Analysts from Stifel maintained a Hold rating on Revvity with a $120 price target, citing strong first-quarter achievements but cautioning about margin pressures in the upcoming quarter. The company has forecasted full-year organic growth of 3-5%, with revenue projections between $2.83 billion and $2.87 billion. Revvity’s strategic product launches and alliances, such as the partnership with Genomics England, are expected to drive further growth. The company’s management expressed confidence in navigating the dynamic macroeconomic environment, highlighting their agility and proactive risk mitigation strategies.
Looking ahead, Revvity anticipates second-quarter revenue between $700 million and $715 million, with adjusted EPS projected at $1.13 to $1.15. Despite uncertainties in academic market funding and sluggish growth in key regions like China and the Americas, Revvity remains optimistic about its differentiated financial profile and potential for continued innovation.
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