Alpha Teknova, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Brendan Smith from TD Cowen maintained a Buy rating on the stock and has a $7.00 price target.
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Brendan Smith has given his Buy rating due to a combination of factors that highlight Alpha Teknova’s strong performance and potential for growth. The company’s recent financial results, particularly the Q3 revenue and gross margin, exceeded expectations, driven by the robust performance of their Lab Essentials segment. This segment’s strength has helped offset challenges faced by the Clinical Solutions segment due to ongoing biotech funding issues.
Smith also notes that Teknova’s diversified revenue streams provide stability in the near term, while the potential recovery in biotech funding could offer additional upside. The company is positioned to scale up to $200 million in revenue with its current infrastructure, further supporting the Buy rating. Although the price target has been adjusted from $10 to $7 to account for broader market conditions and lower peer multiples, the overall outlook remains positive with an anticipated 10% year-over-year growth in total revenues by FY26.