Micron stock rises as Citi boosts price target ahead of earnings
On Friday, Wells Fargo (NYSE:WFC) initiated coverage on Bio-Techne Corp. (NASDAQ:TECH), currently trading at $48.33, with an Overweight rating and set a price target of $59.00. The firm’s analyst, Brandon Couillard, cited the company’s strong financial position, supported by a healthy current ratio of 3.71 and an overall "GOOD" financial health score according to InvestingPro, with expectations that Bio-Techne could achieve a net cash status by the second half of 2026. The analyst anticipates that the company will continue its strategic acquisitions, including the potential purchase of the remaining 80% of Wilson Wolf for approximately $1 billion in calendar year 2028.
Couillard believes that even after this significant acquisition, Bio-Techne would still have around $1 billion available for additional mergers and acquisitions (M&A) or incremental share repurchases through fiscal year 2028. The recent decline in the company’s share price is seen as an opportunity for investors, as the stock now trades at approximately 25 times the firm’s estimated CY25 earnings per share (EPS), excluding stock-based compensation (SBC). This valuation is roughly two standard deviations below its five-year average of around 40 times forward twelve months (FTM) EPS.
The analyst points out that the current share price implies a 12% premium to peers, compared to a 10-year average relative premium of +45%, which reflects Bio-Techne’s above-average growth and margin profile, evidenced by its impressive 66.32% gross profit margin. Looking forward, Wells Fargo sees improved growth prospects for Bio-Techne in fiscal years 2026 and 2027, building on its 4.72% revenue growth over the last twelve months. The $59 price target represents a multiple of 26.5 times the firm’s projected CY26 EPS, suggesting a positive outlook for the stock’s performance. InvestingPro analysis reveals 12 additional key insights about Bio-Techne’s financial health and growth potential.
In other recent news, Bio-Techne Corp reported its third-quarter earnings for 2025, with an adjusted earnings per share (EPS) of $0.56, exceeding the forecasted $0.51. Despite this positive earnings surprise, the company’s revenue slightly missed expectations, coming in at $316.2 million compared to the projected $317.5 million. The Protein Sciences segment showed strong performance, contributing to a 6% organic revenue growth, although challenges in the Chinese market led to a mid-single-digit decline. Analysts noted that Bio-Techne’s operational efficiency was evident as the adjusted operating margin increased to 34.9%. However, the company anticipates potential margin headwinds in the next quarter due to ongoing tariff impacts and uncertainties surrounding NIH funding. Bio-Techne is actively working to mitigate these challenges, with CEO Kim Kelderman expressing confidence in the company’s strategic positioning. Additionally, the firm’s board welcomed Dr. Amy Herr as a new director, bringing valuable expertise in bioengineering. These developments reflect Bio-Techne’s resilience amidst a complex economic landscape.
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