Scotiabank Maintains Buy Rating for Bio-Techne with $75 Price Target

Scotiabank maintains a Buy rating for Bio-Techne with a price target of $75. Analyst Sung Ji Nam has a 43.97% success rate and an average return of -3.5%. The company reported Q1 revenue of $316.18 million and net profit of $22.59 million, compared to $303.43 million and $49.06 million last year. Corporate insider activity is negative, with an increase in insiders selling their shares.

Bio-Techne (TECH) reported its first quarter (Q1) 2025 earnings, meeting market expectations but also revealing some headwinds and uncertainties. The company's revenue was $316.2 million, a 4.2% year-on-year (YoY) increase, while adjusted earnings per share (EPS) came in at $0.56, beating analysts' estimates by 10.4% [1].

The company's adjusted EBITDA margin improved to 37.7%, a 4.3% beat over estimates, driven by robust demand from large pharmaceutical customers and disciplined cost control measures [1]. However, the operating margin decreased to 12.2% from 22.1% in the same quarter last year, signaling a potential slowdown in profitability.

During the earnings call, analysts probed several key areas. Puneet Souda (Leerink Partners) asked about the impact of academic funding uncertainty and potential pull-forward in pharma orders. Jim Hippel (CFO) clarified that pharma growth was sustained and not due to early demand, while academic headwinds were most pronounced after policy announcements [1]. Dan Leonard (UBS) questioned the company's tariff exposure and manufacturing flexibility. CEO Kim Kelderman explained that regional manufacturing and supply chain adjustments largely insulated Bio-Techne from tariff impacts, especially regarding instruments and consumables exported to China [1].

Analysts also sought clarity on the sustainability of organic growth rates and margin outperformance. Hippel responded that recent margin improvements were due to disciplined cost controls, and any temporary slowdown from macro headwinds should reverse once uncertainty resolves [1]. Additionally, Daniel Markowitz (Evercore ISI) asked whether projected academic headwinds would meaningfully impact long-term growth assumptions. Hippel stated that even in severe budget cut scenarios, academic exposure is limited and the company’s strategic plan still targets double-digit growth [1].

Scotiabank maintains a Buy rating for Bio-Techne with a price target of $75. Analyst Sung Ji Nam has a 43.97% success rate and an average return of -3.5% [2]. The company reported Q1 revenue of $316.18 million and net profit of $22.59 million, compared to $303.43 million and $49.06 million last year. However, corporate insider activity is negative, with an increase in insiders selling their shares [2].

In the wake of this quarter, Bio-Techne's stock price has seen a positive reaction, trading at $53, up from $47.64 just before the earnings [1]. The company will continue to monitor academic research budgets, tariff mitigation efforts, and the adoption of new product platforms in organoid solutions and spatial biology over the next few quarters [1].

References:
[1] https://www.financialcontent.com/article/stockstory-2025-7-9-5-revealing-analyst-questions-from-bio-technes-q1-earnings-call
[2] https://www.gurufocus.com/news/2966049/biotechne-tech-receives-buy-rating-with-65-price-target-from-td-cowen-tech-stock-news