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Revvity, Inc. (RVTY), based in Waltham, Massachusetts, is a leading global provider of life sciences and diagnostics solutions. Valued at a market capitalization of $13.6 billion, the company specializes in innovative products and services that drive advancements in scientific research, healthcare, and diagnostics, playing a vital role in improving patient outcomes and supporting medical science breakthroughs.
Shares of RVTY have underperformed the broader market considerably over the past year. RVTY has gained 27.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.3%. Also, in 2024, the stock is up 4.9%, compared to the SPX’s 25.5% rise on a YTD basis.
Narrowing the focus, RVTY has outpaced the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained 10.9% over the past year. But the ETF’s 6.6% return on a YTD basis outshines the stock’s gains in 2024.
On Nov 4, Revvity reported better-than-expected third-quarter results, with $684 million in revenue and adjusted EPS of $1.28. It also authorized a $1 billion share repurchase and slightly raised its EPS guidance for 2024, despite lowering its revenue outlook. For Q4, the company expects organic growth of 3% to 5%, with full-year 2024 revenue projected between $2.75 billion and $2.77 billion. REVY stock rose 3.1% following the earnings release.
For the current fiscal year, ending in December, analysts expect RVTY’s EPS to grow 4.3% year over year to $4.85 on a diluted basis. The company's earnings surprise history is robust. It exceeded the consensus estimate in each of the last four quarters.
Among the 17 analysts covering RVTY stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is slightly less bullish than two months ago, with eight analysts suggesting a “Strong Buy.”
Recently, TD Cowen raised its price target for Revvity from $141 to $144, maintaining a “Buy” rating on the stock. This adjustment follows Revvity's third-quarter results, which revealed weak instrument sales, particularly in China, prompting the company to lower its fourth-quarter guidance. Despite these challenges, Revvity's strong cost controls, debt reduction efforts, and shareholder returns through buybacks are seen as positive factors for its future performance. TD Cowen’s optimistic outlook suggests confidence in Revvity's ability to navigate market conditions and grow in 2025.
The mean price target of $135.94 represents an 18.6% premium to RVTY’s current price levels. The Street-high price target of $146 suggests an upside potential of 27.3%.
