On Monday, Stifel maintained its Hold rating on Bruker (NASDAQ:BRKR) Corporation shares (NASDAQ:BRKR) following the company's announcement of a definitive agreement to acquire assets and rights associated with NanoString's business. The deal, valued at approximately $392.6 million in cash along with the assumption of certain liabilities, comes after NanoString's press release last week.
Bruker stated that due to the Chapter 11 reorganization, past injunctions, and ongoing legal uncertainties, they cannot provide specific guidance for the newly acquired business for the remainder of 2024. Still, they have offered a preliminary estimate of an earnings per share (EPS) dilution of $0.15 to $0.20 for the year.
Based on this estimate and considering several financial factors, the expected full-year adjusted EBITDA loss is projected to be between $30 million and $40 million.
Looking to the future, Bruker's management anticipates the NanoString business to approach a break-even point by 2026, with expectations of resumed revenue growth and improved margins. The company also projects that the broader spatial biology business will achieve double-digit organic growth and increasing EPS accretion starting in 2027.
The Stifel analyst highlighted that while the projected dilution for 2024 seems reasonable, the long-term success of the acquisition and its impact on Bruker's profit and loss will depend on future performance, which currently requires a cautious approach due to the many variables involved.
InvestingPro Insights
With Bruker Corporation's recent acquisition announcement, the market has seen a mix of reactions reflected in the company's stock performance. According to InvestingPro data, Bruker has a market cap of $11.36 billion and is trading at a Price/Earnings (P/E) ratio of 26.76, which adjusts to 31.01 when looking at the last twelve months as of Q4 2023.
Despite the uncertainties surrounding the NanoString acquisition, Bruker's revenue growth over the last twelve months stands at a robust 17.14%, with the quarterly figure even higher at 20.62%.
From the perspective of InvestingPro Tips, it is noted that management has been actively buying back shares, which can be a sign of confidence in the company's value. Moreover, the Relative Strength Index (RSI) suggests that the stock is currently in oversold territory, potentially indicating an upcoming rebound.
For investors looking for more comprehensive analysis, there are 15 additional InvestingPro Tips available for Bruker Corporation, which can be accessed with an exclusive offer using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While Bruker's near-term earnings growth is trading at a low P/E ratio, the company has also been profitable over the last twelve months. This profitability, coupled with a moderate level of debt and the ability of cash flows to sufficiently cover interest payments, provides a foundation for potential financial stability as the company integrates the NanoString business.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.