Alpha Teknova’s Growth Potential and Strategic Strengths Highlighted in Analyst Buy Rating

TD Cowen analyst Brendan Smith has maintained their bullish stance on TKNO stock, giving a Buy rating on May 9.

Brendan Smith’s rating is based on several key factors that highlight Alpha Teknova’s potential for growth and stability. The company has demonstrated steady execution with its Q1 revenues and adjusted EBITDA slightly surpassing consensus expectations. Additionally, management has reiterated their FY25 revenue guidance, projecting a 7% growth at the midpoint, which indicates confidence in their strategic direction.
Another factor contributing to the Buy rating is Teknova’s limited exposure to NIH funding and tariffs, setting it apart from its peers in the life sciences tools sector. The shift from stock to custom reagents as programs progress into preclinical development is expected to boost top-line growth and improve gross margins. Furthermore, the company’s disciplined cash management and investment execution amidst a challenging market environment are seen as underappreciated strengths that could drive future performance.

In another report released on May 9, Craig-Hallum also maintained a Buy rating on the stock with a $12.00 price target.