Tecan initiated with an Underperform at Bernstein

Bernstein analyst Delphine Le Louet initiated coverage of Tecan (TCHBF) with an Underperform rating and CHF 165.20 price target The firm notes Tecan is a global leader in laboratory automation and robotics. As a niche player in growing markets, it currently faces challenges ranging from a general slowdown in instrument sales to margin pressures in both of its divisions: Life Sciences and Partnering Business. The lab automation industry is robust, fragmented and dominated by large diversified players. Bernstein has found no evidence of major changes in the sector dynamics that could drastically change the positive outlook for the industry. However, it is increasingly clear, in the firm’s view, that Tecan is becoming sub-scale relative to larger players.