TECH: Buy, Hold, or Sell?
Ever wondered what's happening with leading life sciences companies in the stock market? Today, we're diving deep into Bio-Techne Corporation (TECH), a key player in the biotechnology sector. We'll explore its recent market performance, break down its latest earnings, and, most importantly, uncover what analysts are saying about its future. If you're invested in biotech or just curious about stock analysis, you're in the right place! Let's get started.
Bio-Techne Corporation (TECH) is a Minneapolis-headquartered powerhouse in the life sciences industry. With a substantial market capitalization of $8.4 billion, the company is at the forefront of developing, manufacturing, and selling essential life science reagents, instruments, and services. Their offerings cater to critical research, diagnostics, and bioprocessing markets, specializing in vital components like proteins, cytokines, growth factors, immunoassays, and small molecules. Essentially, they provide the sophisticated tools and materials that drive scientific discovery and medical advancements.
While Bio-Techne is a leader in its field, its stock performance over the past year has presented a significant challenge. TECH shares have notably underperformed the broader market, declining by a considerable 28.5%. To put this in perspective, the S&P 500 Index ($SPX) rallied by nearly 16.1% during the same period. This trend continued into 2025, with TECH stock down 26% year-to-date, contrasting sharply with the SPX’s 9.7% rise.
Even when compared to its sector peers, TECH's underperformance is evident. The iShares Biotechnology ETF (IBB), which tracks the performance of the biotechnology sector, has seen a more modest decline of about 4.5% over the past year. Furthermore, the IBB's 4.7% returns on a YTD basis significantly outshine TECH's double-digit losses. This highlights a period of specific headwinds for Bio-Techne, despite the broader market and sector trends.
Despite the stock's recent struggles, Bio-Techne delivered some encouraging news with its Q4 results. On August 6th, TECH shares initially closed down by 8.7% after the earnings report, but a closer look reveals positive surprises:
- Adjusted EPS: The company reported an adjusted EPS of $0.53, which comfortably surpassed Wall Street expectations of $0.50.
- Revenue: Revenue came in at $317 million, also exceeding Wall Street forecasts of $315.4 million.
This consistent ability to beat consensus estimates isn't new for Bio-Techne; the company boasts an impressive earnings surprise history, having beaten the consensus estimate in each of the last four quarters. Looking ahead to fiscal 2026 (ending June 2026), analysts project TECH’s diluted EPS to grow by 2.9% to $1.76. This indicates a belief in continued, albeit modest, earnings growth.
So, what do the experts think about Bio-Techne's future, especially given its mixed performance? Among the 17 analysts currently covering TECH stock, the consensus stands at a "Moderate Buy." This rating is composed of:
- 11 "Strong Buy" ratings
- 5 "Holds"
- 1 "Strong Sell"
Interestingly, this configuration is more bullish than it was just a month ago, when there were 10 "Strong Buy" ratings. This suggests a slight improvement in sentiment among analysts.
Let's look at some specific targets:
- On August 7th, Conor McNamara from RBC Capital maintained a "Hold" rating on TECH but set a price target of $61. This implies a potential upside of 14.5% from current levels.
- The mean price target across all analysts is $64.57, representing a 21.2% premium to TECH’s current price.
- For the more optimistic investors, the Street-high price target is an ambitious $75, suggesting a potential upside of 40.7%.
These figures indicate that while the past year has been tough, many analysts see significant recovery potential and value in Bio-Techne at its current valuation.
Q2. What is the overall analyst consensus for Bio-Techne stock, and what does the highest price target suggest?
A. The overall analyst consensus for Bio-Techne stock is a "Moderate Buy," with 11 "Strong Buy" ratings. The Street-high price target is $75, suggesting an ambitious upside potential of 40.7% from current price levels.