Cytek Biosciences: Hold Rating Amid Macroeconomic Challenges and Limited Upside Potential

Morgan Stanley analyst Tejas Savant maintained a Hold rating on Cytek Biosciences (CTKB – Research Report) yesterday and set a price target of $7.00.

Tejas Savant has given his Hold rating due to a combination of factors affecting Cytek Biosciences. The company’s first-quarter performance was impacted by a challenging macroeconomic environment and policy uncertainties, leading to revenue figures falling short of expectations. Specifically, Cytek reported a 7.6% year-over-year decline in revenue, primarily due to weak instrument sales in the U.S. and EMEA regions, although there was some strength in APAC and other regions.
Despite the undemanding valuation, Tejas Savant sees limited upside potential for Cytek Biosciences until there is more clarity on macroeconomic conditions. The company has also lowered its guidance for 2025, citing constrained capital purchasing environments and ongoing uncertainty in academic and government funding. While there was notable growth in service revenue and certain product lines like the Aurora Cell Sorter, these positives are tempered by broader market challenges and cautious spending in the biopharma sector.