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Bio-Techne shares target raised, outperform on strong Q1 results

EditorNatashya Angelica
Published 2024/10/31, 15:12
TECH
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On Thursday, Baird updated its financial outlook for Bio-Techne Corp. (NASDAQ:TECH) stock, increasing the price target to $84 from the previous $82, while maintaining an Outperform rating on the company's stock.

The adjustment came in response to Bio-Techne's fiscal first quarter revenue and earnings per share surpassing Baird's projections, primarily driven by an impressive performance in cell and gene therapy sectors, which included a growth of over 60% in GMP reagents.

The firm's management described the fiscal first quarter's outcomes as largely in line with expectations, highlighting a continued stabilization within the biopharma sector.

Furthermore, Bio-Techne noted a promising run-rate demand for Research Use Only (RUO) products from smaller biotech firms, which supports a cautious optimism for a gradual recovery in end markets, as reflected in the company's guidance for fiscal year 2025.

Baird expressed confidence in Bio-Techne's strong start to the fiscal year 2025, suggesting that the company's performance could signal a positive trend. The main focus for the near term, according to the firm, is the clarity and timing of Bio-Techne's organic growth recovery. This aspect is seen as a pivotal factor for the company's trajectory moving forward.

Bio-Techne's recent financial performance indicates that the company is navigating the current market conditions effectively, with particular success in the cell and gene therapy spaces. The raised price target reflects Baird's optimism about the company's potential for sustained growth and its ability to meet the evolving demands of the biotechnology industry.

Investors and market watchers will likely monitor Bio-Techne's progress closely, especially regarding the company's ability to maintain its growth momentum in the cell and gene therapy markets. The updated price target serves as a marker of Baird's expectations for Bio-Techne's financial performance in the coming period.

In other recent news, Bio-Techne Corporation reported a 4% year-over-year organic revenue growth in its first quarter for Fiscal Year 2025, with revenues reaching $289.5 million. The adjusted earnings per share (EPS) saw a slight increment to $0.42 from the previous year's $0.41, despite market challenges.

Notably, the company experienced over 60% growth in its cell and gene therapy segment's GMP reagents, contributing to the steady performance.

Despite facing challenges in China, which led to a decline in revenue in the region, Bio-Techne highlighted its successful launch of new products, including the high-throughput Western Blot system, Leo, and RNAscope assays on its COMET platform.

These recent developments reveal a company navigating through market challenges with strategic growth initiatives and product launches. As per the company's outlook, Bio-Techne aims for mid-single digit growth in the second quarter and anticipates acceleration in the second half of the fiscal year.

InvestingPro Insights

Bio-Techne's recent performance and Baird's optimistic outlook are further supported by real-time data from InvestingPro. The company's market capitalization stands at $12.06 billion, reflecting its significant presence in the biotechnology sector. Bio-Techne's revenue for the last twelve months as of Q4 2024 was $1.16 billion, with a modest growth of 1.97% over the same period.

InvestingPro Tips highlight Bio-Techne's financial stability and growth potential. The company has maintained dividend payments for 17 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the volatile nature of the biotech industry. Moreover, Bio-Techne's liquid assets exceed short-term obligations, indicating a strong financial position that aligns with Baird's confidence in the company's future.

The stock's recent performance has been impressive, with InvestingPro data showing a significant 11.19% return over the last week. This aligns with Baird's increased price target and the company's strong fiscal first quarter results. Moreover, Bio-Techne's long-term performance is robust, with a high return over the last decade, suggesting sustained value creation for investors.

For readers interested in a deeper analysis, InvestingPro offers 11 additional tips for Bio-Techne, providing a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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