Buy Rating for Standard BioTools: Balancing Challenges with Strategic Growth Initiatives

TD Cowen analyst Daniel Brennan maintained a Buy rating on Standard BioTools (LAB – Research Report) yesterday and set a price target of $2.50.

Daniel Brennan has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Standard BioTools. Despite a projected decline in revenue for 2025, driven by ongoing macroeconomic pressures and specific headwinds like NIH funding uncertainties, the company is showing signs of operational improvement. Positive customer trends and a strengthening sales funnel, along with momentum in their SomaScan product, suggest potential for future growth.
Moreover, the company is actively working on cost reduction initiatives, having already implemented significant savings measures. Their focus on mergers and acquisitions, with plans for several deals in the coming years, indicates a strategic approach to enhancing growth and profitability. Additionally, a strong balance sheet with substantial cash reserves and a path towards positive adjusted EBITDA by 2026 further supports the Buy rating, reflecting confidence in the company’s long-term potential despite current challenges.

Brennan covers the Healthcare sector, focusing on stocks such as Exact Sciences, Natera, and GeneDx Holdings. According to TipRanks, Brennan has an average return of 12.2% and a 45.52% success rate on recommended stocks.