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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.
