Bio-Rad stock touches 52-week low at $262.11 amid market shifts

In a challenging market environment, Bio-Rad Laboratories Inc (NYSE:BIO). stock has recorded a 52-week low, dipping to $262.11. With a current ratio of 6.48, the company maintains strong liquidity, and InvestingPro analysis indicates the stock is currently in oversold territory. The life science research and clinical diagnostic products company has faced a significant downturn over the past year, with its stock price reflecting a 1-year change of -19.04%. While the company operates with moderate debt levels and management has been actively buying back shares, this decline underscores the broader market trends and investor sentiment that have impacted the performance of Bio-Rad’s shares. Despite the current low, the company’s long-term value proposition and its role in the critical healthcare sector continue to be areas of focus for investors considering the stock’s future trajectory. According to InvestingPro analysis, Bio-Rad appears undervalued, with analysts expecting profitability this year. Discover more insights and 8 additional ProTips by visiting InvestingPro.

In other recent news, Bio-Rad Laboratories reported its fourth-quarter 2024 earnings, which showed a slight miss on revenue expectations, with net sales of $668 million compared to a forecast of $681.29 million. Earnings per share, however, slightly exceeded forecasts, coming in at $2.90 against an expected $2.86. The company’s full-year 2024 net sales were $2.567 billion, marking a 3.9% decline from the previous year, with the Life Science Group experiencing a 12.8% decline in sales, while the Clinical Diagnostics Group saw a 3.3% increase. Looking forward, Bio-Rad anticipates modest recovery and growth in 2025, driven by strategic acquisitions and product innovations, including a binding offer to acquire STILA Technologies.

Additionally, Citi analyst Patrick Donnelly revised the price target for Bio-Rad Laboratories, lowering it to $400 from the previous $450, while maintaining a Buy rating on the stock. This adjustment reflects the company’s forecast for its core FY25 growth to range between 1.5% and 3.5%, aligning with the consensus estimate. Bio-Rad’s guidance for gross margin and operating profit margin for fiscal year 2025, set at 55-55.5% and 13.0-13.5% respectively, fell short of market expectations due to challenges such as foreign exchange rates and reimbursement headwinds.

Despite these challenges, Citi noted positive developments for Bio-Rad in FY25, particularly in the process chromatography division, which is projected to see high single-digit growth. The company’s digital droplet polymerase chain reaction (ddPCR) technology is also expected to grow by 1-2%, with consumables expanding at a faster rate. The Clinical Diagnostics segment faced challenges due to changes in diabetes reimbursement policies in China, but the diagnostics market outside of China remains stable. Bio-Rad’s strategic focus on operational and commercial excellence is expected to support margin improvement as the Life Science market normalizes.

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