Leerink Partners analyst Puneet Souda has maintained their bullish stance on TECH stock, giving a Buy rating today.
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Puneet Souda has given his Buy rating due to a combination of factors, primarily driven by Bio-Techne’s strategic divestiture of the ExoDx test and CLIA lab to Mdxhealth. This move is seen as beneficial for Bio-Techne as it allows the company to focus on its core strengths, particularly in supplying high-value reagents for diagnostic kits rather than engaging in central lab testing models. The divestiture is expected to enhance Bio-Techne’s operating margins, especially in the Diagnostics and Spatial (DSS) segment, which has been underperforming compared to the company’s overall margins.
Furthermore, the experience gained from past challenges in the diagnostics sector, such as the ExoDx and Astute Medical investments, has positioned Bio-Techne to make more profitable strategic decisions. The acquisition of Asuragen, which has proven to be highly profitable with significant gross margins, exemplifies this improved strategic focus. Overall, these factors contribute to a positive outlook for Bio-Techne’s financial performance, justifying the Buy rating.
In another report released today, UBS also reiterated a Buy rating on the stock with a $65.00 price target.
TECH’s price has also changed moderately for the past six months – from $75.250 to $54.640, which is a -27.39% drop .