Citi Names TECH, WST, GH as Top Picks in Life Science Tools & Diagnostics

Friday, Aug 22, 2025 1:08 am ET1min read

Citi Research analysts have identified TECH, WST, and GH as top picks among life science tools & diagnostics companies. The sector experienced volatility in Q2 2025, with most previous quarter headwinds persisting. The analysts have highlighted these companies as promising options despite the ongoing challenges.

In the second quarter of 2025, the life science tools and diagnostics sector in North America continued to experience volatility, with many of the challenges from the previous quarter persisting. According to Citi Research analysts, while easing tariffs in China provided a modest boost, overall investor interest in the tools and contract research organization segments remained subdued [1].

Citi analysts highlighted three companies as top picks for the sector: Bio-Techne (NASDAQ:TECH), West Pharmaceutical (NYSE:WST), and Guardant Health (NASDAQ:GH). These companies were selected based on strong second-quarter performance and favorable outlooks. Bio-Techne was upgraded to a "Buy" rating by Citi due to its favorable valuation and conservative fiscal 2026 guidance. Conversely, ICON (NASDAQ:ICLR) was downgraded to "Neutral" due to concerns over booking and cancellation trends, which have clouded its long-term growth prospects [1].

The analysts also noted that academic instrument-exposed businesses such as Bruker (NASDAQ:BRKR), Illumina (NASDAQ:ILMN), and Thermo Fisher (NYSE:TMO) continued to face global capital pressures. Despite these challenges, Citi Research remains optimistic about the sector's potential, highlighting the resilience of top-performing companies like Bio-Techne, West Pharmaceutical, and Guardant Health.

References:
[1] https://seekingalpha.com/news/4487956-citi-names-tech-wstr-gh-as-top-picks-among-life-science-tools-diagnostics

Citi Names TECH, WST, GH as Top Picks in Life Science Tools & Diagnostics

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