On Wednesday, KeyBanc maintained a positive outlook on Bio-Techne Corp (NASDAQ:TECH), reiterating an Overweight rating and a $80.00 price target. The firm's analysis suggests that despite a challenging funding environment in the previous years, Bio-Techne's business model, which is largely driven by consumable products and has significant exposure to research and development, may be a reliable indicator of increased funding and activity in the life science tools sector for 2024.
While the fourth quarter of 2024 was somewhat disappointing for Bio-Techne, the first quarter of 2025 showed considerable strength. The company provided positive updates, particularly in the cell and gene therapy (CGT) and pharmaceutical/biotechnology funding areas. During this period, Bio-Techne saw widespread growth in its CGT business, marked by larger orders from big customers advancing through trials and an increase in order frequency from smaller customers.
The company’s performance also indicated stable and improving order trends from large pharmaceutical companies and an uptick in business from smaller biotech firms. This broad-based strength across Bio-Techne's customer segments has contributed to the firm's optimistic assessment.
KeyBanc has released a revised model reflecting the results from the first quarter of 2025, as well as the updated commentary on the fiscal year 2025. The model takes into account the recent performance and forward-looking statements provided by Bio-Techne, which signal a positive trajectory for the company in the life sciences sector.
In other recent news, Luminary Therapeutics and ImmunoScape Pte. Ltd. have received substantial G-Rex grants to support the advancement of their respective therapies. Luminary Therapeutics was granted $300,000 to further its development of novel CAR γδ T cell therapies for autoimmune diseases. Simultaneously, ImmunoScape secured a $250,000 grant to expedite the development of its novel WT1-targeted therapy. Both grants were facilitated by ScaleReady, Wilson Wolf Manufacturing, and Bio-Techne Corporation.
Bio-Techne Corporation reported a 1% year-over-year organic revenue growth in its fourth-quarter results, with the ExoDx Prostate test in molecular diagnostics exceeding 20% organic revenue growth. Scotiabank maintained a Sector Outperform rating on Bio-Techne shares, expressing confidence in the company's ability to continue outperforming its peers despite anticipated market declines. The firm attributed Bio-Techne's success to its Four Growth Pillars, which have been key drivers for the company.
InvestingPro Insights
To complement KeyBanc's positive outlook on Bio-Techne Corp (NASDAQ:TECH), recent data from InvestingPro provides additional context for investors. The company's market capitalization stands at $12.04 billion, reflecting its significant presence in the life sciences tools sector.
Bio-Techne's financial health appears robust, with an InvestingPro Tip noting that "cash flows can sufficiently cover interest payments," which aligns with the company's ability to navigate challenging funding environments. Additionally, the company "operates with a moderate level of debt," potentially providing flexibility for future growth initiatives in areas like cell and gene therapy.
The company's profitability is underscored by its positive earnings, with a P/E ratio of 70.17. This high multiple suggests that investors are pricing in expectations for future growth, consistent with KeyBanc's optimistic view. Moreover, Bio-Techne has demonstrated its commitment to shareholder returns, having "maintained dividend payments for 17 consecutive years," according to another InvestingPro Tip.
For investors seeking a deeper understanding of Bio-Techne's potential, InvestingPro offers 10 additional tips that could provide valuable insights into the company's financial position and market performance.
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