Bank of America Securities analyst Michael Ryskin reiterated a Buy rating on Revvity yesterday and set a price target of $110.00.
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Michael Ryskin has given his Buy rating due to a combination of factors influencing Revvity’s financial outlook. Despite a reduction in the FY25 organic sales and adjusted EPS projections primarily due to challenges in the Chinese market, Revvity reported a strong second quarter with sales reaching $720 million and an adjusted EPS of $1.18. The company’s management has taken proactive measures to address margin pressures, particularly from the Diagnostic Related Group (DRG) policy in China, which is affecting the demand for multiplex tests.
Ryskin is optimistic about Revvity’s future, especially with the company’s strategic cost actions expected to be fully implemented by 2026, setting a high operating margin baseline of 28%. This, combined with strong performance in their software segment and anticipated above-market growth in instruments and reagents, supports the Buy rating. The price objective remains at $110, reflecting confidence in Revvity’s ability to navigate current challenges and achieve margin expansion, despite the lower estimates for FY25.
Ryskin covers the Healthcare sector, focusing on stocks such as Thermo Fisher, Danaher, and Waters. According to TipRanks, Ryskin has an average return of 2.2% and a 53.85% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $110.00 price target.