Standard BioTools, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Kyle Boucher from TD Cowen downgraded the rating on the stock to a Hold and gave it a $1.55 price target.
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Kyle Boucher has given his Hold rating due to a combination of factors affecting Standard BioTools. The recent sale of SomaLogic to ILMN has altered the growth outlook for the company, diminishing the expected growth trajectory and reducing the visibility of future catalysts. This transaction was a significant component of the company’s strategy, and its divestiture has led to a reassessment of the company’s potential for growth, particularly in light of ongoing market headwinds such as US Academic funding challenges and soft capital expenditure trends.
Despite the potential for future mergers and acquisitions to drive growth, there is currently limited clarity regarding the pipeline of potential acquisition targets, the timing of these transactions, and their financial implications. The proceeds from the SomaLogic sale are anticipated to support the company’s core M&A strategy, but the uncertainty surrounding the timing and scale of potential deals contributes to the Hold rating. Consequently, Boucher has adjusted the price target to $1.55, reflecting these uncertainties and the need for better visibility into future growth catalysts.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LAB in relation to earlier this year.