TD Cowen has begun coverage of Bio-Techne (TECH, Financial), assigning it a Buy rating and setting a price target of $65. Despite macroeconomic challenges impacting the shares, the firm believes the recent decline and valuation shift are overly exaggerated. Analysts highlight that the current market value does not adequately capture Bio-Techne's potential for strong organic growth and profit margins. These attributes are particularly notable as the company focuses on high-growth sectors within the Tools industry, supported by robust product offerings.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Bio-Techne Corp (TECH, Financial) is $67.51 with a high estimate of $90.00 and a low estimate of $51.00. The average target implies an upside of 28.15% from the current price of $52.68. More detailed estimate data can be found on the Bio-Techne Corp (TECH) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Bio-Techne Corp's (TECH, Financial) average brokerage recommendation is currently 2.2, 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 Bio-Techne Corp (TECH, Financial) in one year is $86.06, suggesting a upside of 63.36% from the current price of $52.68. 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 Bio-Techne Corp (TECH) Summary page.
TECH Key Business Developments
Release Date: May 07, 2025
- Organic Revenue Growth: 6% for the third quarter of fiscal year 2025.
- Adjusted Operating Margin: 34.9% for the quarter.
- Adjusted EPS: $0.56 compared to $0.48 in the prior year.
- GAAP EPS: $0.14 compared to $0.31 in the prior year.
- Q3 Revenue: $316.2 million, a 6% increase year over year on an organic basis.
- Adjusted Gross Margin: 71.6% in the quarter.
- Adjusted SG&A: 29% of revenue, down from 30.3% in the prior year.
- R&D Expense: 7.8% of revenue, down from 8.5% in the prior year.
- Cash Generated from Operations: $41.1 million in the quarter.
- Capital Expenditures: $10.1 million net investment.
- Dividends and Stock Buybacks: $12.6 million in dividends and $100 million in stock buybacks.
- Protein Sciences Segment Revenue: $227.7 million, with 7% organic growth.
- Diagnostics and Spatial Biology Segment Revenue: $89.2 million, with 2% organic growth.
- Net Interest Expense: $0.8 million, a decrease of $2.3 million compared to the prior year.
- Bank Debt: $330 million at the end of Q3.
- Cash Balance: $140.7 million at the end of Q3.
- Total Leverage Ratio: Well below 1 times EBITDA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bio-Techne Corp (TECH, Financial) reported a strong quarter with 6% organic revenue growth despite a challenging macro environment.
- The company achieved an adjusted operating margin of 34.9%, highlighting operational efficiencies and profitability.
- Bio-Techne's protein sciences segment saw 7% organic revenue growth, driven by strong demand for proteomic reagents and cell therapy workflow solutions.
- The diagnostics and spatial biology segment delivered 2% organic revenue growth, with notable progress in the ExoDx prostate cancer test and spatial biology instruments.
- Bio-Techne is well-positioned to benefit from potential shifts in NIH funding towards research areas like cancer and neurological disorders, aligning with their product portfolio.
Negative Points
- Uncertainty around NIH funding and US policy shifts is causing concern among US academic customers, potentially impacting future research project funding.
- The recent escalation of global tariffs poses a challenge, with a potential $20 million annual impact on adjusted operating income if not mitigated.
- China's economic situation remains challenging, with mid-single-digit revenue declines in the region.
- The academic market in the US is facing headwinds due to NIH funding uncertainties, impacting purchase decisions, particularly for capital equipment.
- Bio-Techne anticipates a temporary slowdown in growth momentum to low single digits in Q4 due to macro uncertainties, including tariffs and potential NIH budget cuts.
