TD Cowen analyst Brendan Smith has maintained their bullish stance on TKNO stock, giving a Buy rating on August 5.
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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 strategic positioning. The company’s Q2 revenue and gross margin exceeded expectations, alleviating concerns about macroeconomic uncertainties impacting their financial stability. This performance underscores Teknova’s effective operating leverage and diversified revenue streams, which are less reliant on NIH funding and tariffs, setting them apart from their peers in the life sciences tools sector.
Furthermore, Teknova’s strategic shift from stock to custom reagents and their exposure to various modalities within the cell and gene therapy market provide a robust foundation for continued growth. The company’s ability to add new customers in lab essentials and clinical solutions, coupled with improved manufacturing efficiencies, has reinforced confidence in their business model. These factors collectively support the Buy rating, as they suggest sustained execution and potential for revenue growth in the coming years.