On Friday, UBS maintained its Buy rating on shares of Bruker (NASDAQ:BRKR) Corporation (NASDAQ:BRKR), while increasing the price target to $102 from $94. The revision follows a series of investor meetings with Bruker’s CFO, Gerald Herman, at the UBS European Healthcare Conference.
Bruker, a scientific instrument manufacturer, has been identified as a top pick by UBS. The firm is confident in Bruker’s positioning to meet its 2024 guidance.
The company has also moved its 2026 revenue and earnings per share (EPS) targets to 2025, showcasing strong financial prospects. Key product lines such as Mass Spectrometry (MS), Nuclear Magnetic Resonance (NMR), and Spatial Biology are experiencing positive ordering trends, contributing to the positive outlook.
The company’s performance is notably surpassing market growth and that of its Life Science Tools peers. This success is attributed to a combination of factors including market exposure, a diverse product portfolio, and a strong presence in China.
Additionally, Bruker has begun to see revenue contributions from semiconductor onshoring activities, although significant financial impact from these activities is anticipated to be more pronounced post-2024.
UBS also highlights Bruker’s solid backlog visibility and potential to exceed the consensus expectations for 2024. The company's strategic initiatives, such as increasing its focus on consumables and pharmaceutical end markets, as well as expanding its presence in the United States, are expected to drive growth.
Furthermore, multi-year tailwinds from legislation such as the CHIPS and Science Act and projects in semiconductor artificial intelligence and clean energy are seen as additional growth drivers, although these factors are not yet fully accounted for in UBS's financial model.
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