Analyst Brendan Smith of TD Cowen maintained a Hold rating on Azenta, retaining the price target of $30.00.
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Brendan Smith has given his Hold rating due to a combination of factors affecting Azenta’s financial performance. The company’s third-quarter revenue fell short of expectations, primarily due to a slowdown in the storage and gene synthesis segments, although the next-generation sequencing (NGS) segment showed strong growth. This mixed performance indicates both challenges and opportunities for the company moving forward.
Despite the revenue shortfall, Azenta’s management has maintained its fiscal year 2025 guidance, suggesting a cautious optimism about future growth. The company’s restructuring efforts are beginning to show positive effects on operating expenses, which could improve profitability. However, ongoing macroeconomic and geopolitical challenges, particularly in markets like China, continue to pose risks. As a result, Smith’s Hold rating reflects a balanced view of the company’s potential and the uncertainties it faces.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $33.00 price target.