TD Cowen has adjusted its rating for Cytek Biosciences (CTKB, Financial), moving it from Buy to Hold, with a revised price target of $4, down from the previous $7. This change follows the company's underwhelming first-quarter performance, influenced by several ongoing challenges. Consequently, Cytek has also reduced its fiscal 2025 guidance. Despite their strong position in the flow cytometry market, the firm advises maintaining a cautious stance until a more concrete strategy for renewed growth emerges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Cytek Biosciences Inc (CTKB, Financial) is $6.70 with a high estimate of $9.00 and a low estimate of $3.50. The average target implies an upside of 76.78% from the current price of $3.79. More detailed estimate data can be found on the Cytek Biosciences Inc (CTKB) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Cytek Biosciences Inc's (CTKB, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cytek Biosciences Inc (CTKB, Financial) in one year is $10.47, suggesting a upside of 176.25% from the current price of $3.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cytek Biosciences Inc (CTKB) Summary page.
CTKB Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Service revenue worldwide increased by 24% year-over-year, driven by the expansion of the instrument installed base and active usage across various disciplines.
- Cytek Biosciences Inc (CTKB, Financial) experienced strong demand in the Asia Pacific and other international markets, with revenue in these regions growing by 35.6% year-over-year.
- The company launched a new microcell analyzer, expanding its capabilities and targeting emerging markets such as cell and gene therapy.
- Recurring revenue, including reagents and service revenue, grew to represent 31% of total revenue, up from 26% a year ago.
- Cytek Biosciences Inc (CTKB) maintains a strong balance sheet, allowing for continued investment in growth and innovation.
Negative Points
- First quarter revenue decreased by 7.6% compared to the first quarter of 2024, primarily due to weakness in instrument sales in the US and Europe.
- Product revenue, including instruments and reagents, decreased by 18% year-over-year, impacted by academic funding uncertainties and cautious capital spending in the biotech and pharma industries.
- Gross profit decreased by 12% compared to the previous year, with a decline in both GAAP and non-GAAP gross margins.
- The company revised its full-year 2025 revenue outlook downward due to significant changes in the market environment, including uncertainties in academic funding and government budgets.
- Operating expenses increased, leading to a larger loss from operations compared to the prior year quarter.
