William Blair analyst Matt Larew has reiterated their bullish stance on TKNO stock, giving a Buy rating yesterday.
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Matt Larew has given his Buy rating due to a combination of factors including Alpha Teknova’s consistent revenue growth and strategic management of expenses. The company has demonstrated a fifth consecutive quarter of positive revenue growth, surpassing expectations with a 9% increase, which slightly exceeded the target. Despite some variability in gross margins, Teknova has maintained operating expenses at $8 million or less for six consecutive quarters, showing effective cost management.
Additionally, improvements in biotech funding and the broader pharmaceutical environment suggest a favorable outlook for Teknova, particularly as it aims for adjusted EBITDA breakeven by 2026. The company’s shares are trading at 5.5 times the 2026 sales, which aligns with its peers, supporting the Outperform rating. The reiterated guidance for 2025, with expected revenue growth in Lab Essentials and a manageable decline in Clinical Solutions, further solidifies the positive assessment of Teknova’s future prospects.
Larew covers the Healthcare sector, focusing on stocks such as Thermo Fisher, AptarGroup, and MaxCyte. According to TipRanks, Larew has an average return of -0.9% and a 47.95% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $7.00 price target.