Bio-Techne Corporation (TECH) delivered a strong F2Q25 performance, surpassing expectations with a 9% organic growth, driven by an earlier-than-anticipated recovery in large pharma and improved biopharma demand. Citi maintains a "Neutral" rating with a target price of $80, reflecting a balanced view on the company's growth prospects amid ongoing market dynamics. The report highlights a 3% revenue pull-forward from large customer orders, primarily in Protein Science and DSS segments, which management believes will be offset by continued momentum in large pharma and China.
The company's F2H25 outlook remains optimistic, with expectations for F3Q growth at the high end of mid-single digits and F4Q exiting at high single digits. However, adjusted operating margins for the second half have been revised down by 50 basis points due to foreign exchange headwinds. Key growth drivers include volume and mix leverage, particularly within Protein Sciences, and the realization of prior productivity initiatives.
Citi notes, "We view the quarter as a strong continuation in momentum," emphasizing the constructive forward commentary, especially regarding the large pharma recovery. Bio-Techne's diagnostics and spatial biology segments also showed robust growth, with diagnostics seeing a 12% organic increase, surpassing consensus estimates.
Bio-Techne was trading at $76.09, up 4.88% on February 5, at 3:20.