Stephens has reinitiated its analysis of Azenta (AZTA, Financial) by assigning it an Equal Weight rating and setting a price target of $35. The firm expressed optimism about the steps taken by Azenta's new management team to refine their portfolio. However, Stephens highlights that there is still significant potential for improvement, particularly in terms of profit margins. Despite these positive signs, the firm is exercising caution and prefers to adopt a "wait-and-see" strategy, especially given the current broader economic uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Azenta Inc (AZTA, Financial) is $31.40 with a high estimate of $40.00 and a low estimate of $22.00. The average target implies an upside of 0.26% from the current price of $31.32. More detailed estimate data can be found on the Azenta Inc (AZTA) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Azenta Inc's (AZTA, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" 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 Azenta Inc (AZTA, Financial) in one year is $74.76, suggesting a upside of 138.7% from the current price of $31.32. 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 Azenta Inc (AZTA) Summary page.
AZTA Key Business Developments
Release Date: May 07, 2025
- Organic Revenue Growth: 6% year-over-year increase.
- Adjusted EBITDA Margin: Expanded by 400 basis points year-over-year.
- Sample Management Solutions Revenue: Grew 8% on an organic basis.
- Multiomics Revenue: Grew 3% on an organic basis.
- Non-GAAP EPS: $0.05 per share.
- Free Cash Flow: $7 million for the quarter.
- Cash and Equivalents: $540 million at the end of the quarter.
- Non-GAAP Gross Margin: 47.5%, up 130 basis points year-over-year.
- Sample Management Solutions Gross Margin: 49.7%, up 340 basis points year-over-year.
- Multiomics Gross Margin: 44.9%, down 140 basis points year-over-year.
- Next Generation Sequencing Growth: 20% year-over-year increase.
- Plasma D Revenue: More than doubled compared to the same period last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Azenta Inc (AZTA, Financial) reported a solid second quarter with a 6% year-over-year organic revenue growth and a 400 basis point expansion in adjusted EBITDA margin.
- The company maintained its full-year 2025 guidance of 3% to 5% organic revenue growth and 300 basis points of adjusted EBITDA margin expansion.
- Azenta Inc (AZTA) has a strong financial position with $540 million in cash and no debt, allowing for potential acquisitions and investments in digital capabilities.
- The company is actively evaluating potential acquisitions to accelerate revenue growth and margin expansion, indicating a proactive approach to growth opportunities.
- Azenta Inc (AZTA) has implemented operational improvements, including the Azenta Business System, to enhance efficiency and drive long-term value creation.
Negative Points
- The company faces macroeconomic challenges, including tariffs, funding headwinds for US academic research, and geopolitical tensions, which could impact future performance.
- NIH funding reductions are expected to result in a 1% headwind to revenues, although countermeasures have been put in place to mitigate the impact.
- There was a decline in gene synthesis revenue by 10% year-over-year, attributed to a difficult comparison and a slowdown in North America.
- Sanger sequencing revenue declined by 18% year-over-year due to the industry's transition to newer sequencing technologies.
- Despite improvements, Azenta Inc (AZTA) acknowledges that it is not yet where it needs to be in terms of customer-facing performance metrics, quality, and on-time delivery.
