RBC Capital on Tuesday upgraded Bio-Techne Corporation TECH, noting that recent end-market weakness has over-penalized one of the best assets in the life science and tools (LST) sector, creating an attractive entry point.
Bio-Techne reported fourth-quarter adjusted earnings of 53 cents. It beat the consensus of 50 cents. Sales reached $316.96 million, beating the consensus of $316 million.
"Bio-Techne CEO Kim Kelderman praised the quarter for being "in line" with expectations, despite market uncertainty.
The company also agreed to sell its Exosome Diagnostics Inc. business and related assets to Mdxhealth.
Kelderman said, "This strategic decision will immediately strengthen our profitability and allow us to increase our focus on high-growth areas, particularly tools for research and precision diagnostics."
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RBC Capital said the Exosome deal removes management distractions, and cuts a 200bps margin drag.
Over the last year, Bio-Techne stock has plunged around 26%, according to data from Benzinga Pro.
"With estimated fiscal 2026 numbers essentially de-risked, we think the potential upside from recent M&A deals isn't fully appreciated, and the 25% YTD selloff is unwarranted," analyst Conor McNamara wrote in an analyst note on Tuesday.
RBC Capital upgraded Bio-Techne from Sector Perform to Outperform and raised the price forecast from $61 to $73.
Bio-Techne's valuation multiples are now in line with LST Integrators, Thermo Fisher Scientific Inc TMO, and Danaher Corporation DHR, despite historically trading at a premium.
With end-markets recovering, RBC sees potential for mid-single-digit-plus revenue growth, which could support multiple expansion. Historically, even during low-single-digit growth periods, Bio-Techne has traded at higher valuations.
"If the company can return to mid-single digit revenue growth in the next 12 months - which we think it can - we see a path back towards historical multiples," the analyst added.
Price Action: TECH stock is down 0.45% at $53.18 at the last check on Wednesday.
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