Minneapolis, Minnesota-based Bio-Techne Corporation (TECH) develops, manufactures, and sells life science reagents, instruments, and services for the research, diagnostics, and bioprocessing markets worldwide. The company has a market capitalization of $8.1 billion and operates through Protein Sciences, Diagnostics and Spatial Biology segments.
Companies with a market cap between $2 billion and $10 billion are typically referred to as “mid-cap stocks.” Bio-Techne sits comfortably there, with its market cap exceeding this threshold, reflecting its scale, dominance, and market power.
The stock touched its 52-week high of $72.16 on Jan. 22, and is down 29.1% from that peak. Over the past three months, the stock declined 12.3%, rallying behind the State Street SPDR S&P Biotech ETF’s (XBI) 1.2% decline during the same time frame.
Zooming out, the dynamic stays the same over the longer period. Over the past 52 weeks, the biotech company’s shares tanked 15.3%, failing to overcome XBI, which rose 40.9% over the same time frame.
TECH has been trading below its 200-day moving average since the start of this month, and also below its 50-day moving average since February, reflecting its weak performance and signaling a continued bearish trend.
Bio-Techne has not been a champion in the eyes of investors, given its weak fundamentals. The company has experienced no organic revenue growth over the last two years, indicating a need to move towards acquisitions to drive growth. Moreover, TECH’s free cash flow margin decreased by 11.6% over the last five years, leading to a ramped-up capital intensity and requiring higher investment in operations, which has led to a decline in its profit pool.
When compared to its peer, BridgeBio Pharma, Inc. (BBIO), TECH has underperformed quite harshly. BBIO has surged 107.6% over the past 52 weeks.
Analyst sentiment on TECH remains moderately optimistic. Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” Its mean price target of $74.67 suggests 44.7% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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