Should You Consider Retaining Bruker Stock in Your Portfolio Now?

In This Article:

Bruker Corporation’s BRKR BioSpin Group has been witnessing impressive growth in its end markets and the strategic buyout of Chemspeed is poised to expand its potential. Within BSI Nano, AI is driving significant growth in the semiconductor and metrology tools. The latest innovations and acquisitions in the CALID business uphold its robust growth prospects. Meanwhile, the impact of macroeconomic pressure and competitive challenges may hurt the company’s operational results.

In the past year, this Zacks Rank #3 (Hold) stock has underperformed the industry and the S&P 500. Shares of Bruker have risen 3.1% compared with 10% growth of the industry and 23.8% rise of the S&P 500 composite.

This renowned medical device company has a market capitalization of $11.77 billion. It has a long-term earnings growth rate of 10.6%, marginally exceeding the industry’s 10% growth. BRKR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.1%.

Positives for BRKR

BioSpin’s Solid Growth Potential: Throughout the first half of 2024, BioSpin posted growth across the academic, government and industrial research markets and in its Integrated Data Solutions division. The company’s vendor-agnostic SciY platform also witnessed increased adoption. In the second quarter, BioSpin benefited from the strength in its preclinical imaging and software businesses, leading to a favorable impact on its overall performance.

Additionally, Bruker’s acquisition of Chemspeed Technologies AG has accelerated its entry into lab automation, digitalization and scientific software solutions. The strategic move bolsters the company’s Project Accelerate 2.0 portfolio transformation initiative by offering modular automation to enhance productivity in R&D and QC (Quality Control) departments. The division also benefits from enabling access to Bruker’s high-performance gigahertz and nuclear magnetic resonance technology.

Zacks Investment Research
Zacks Investment Research


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Bright Prospects for BSI Nano Group: The segment is witnessing robust revenue growth across its end markets, including academic, government, industrial and semiconductor metrology. The artificial intelligence megatrend is a major driver for the semiconductor metrology and advanced packaging tools business.

During the first half of 2024, the company’s advanced X-Ray and Nano Analytics businesses delivered strong sales. The success was backed by Nano’s robust revenue growth on rising demand in academic & government markets, along with the recent acquisition of NanoString, whose cutting-edge platforms and solutions for spatial transcriptomics and gene expression analysis enhance Bruker’s spatial biology portfolio.

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