Bio-Techne: Near-Term Resilience and Margin Expansion Support Accelerating Growth and Buy Rating Into 2027

Patrick B Donnelly, an analyst from Citi, maintained the Buy rating on Bio-Techne. The associated price target is $80.00.

Patrick B Donnelly has given his Buy rating due to a combination of factors that highlight both near-term resilience and an improving medium-term outlook for Bio-Techne. He points to the company’s reaffirmed low single-digit organic growth guidance for FY26, with growth expected to accelerate into the mid-single digits by the fourth quarter as temporary customer and order-timing headwinds fade. Management’s confidence in hitting these targets is underpinned by easier comparisons, potential upside from recovering biotech and academic/government demand, and a gradual easing of cell therapy–related pressures.

Donnelly also underscores the attractiveness of Bio-Techne’s margin profile, with management targeting approximately 100 basis points of adjusted operating margin expansion in FY26, supported by better gross margin mix, productivity gains, and disciplined cost control. He notes that underlying growth excluding cell therapy headwinds is already closer to mid-single digits, suggesting healthier core demand than headline numbers imply. In addition, he highlights improving external drivers, including a recent pickup in biotech funding, a proposed increase in NIH budgets, and encouraging signs from China in biotech transactions and CDMO/CRO activity. Taken together, these factors support his constructive stance into 2027 and justify maintaining a Buy rating and a higher target price.