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Bruker (BRKR) Poised on Portfolio Strength across Segments - Analyst Blog

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On Jun 15, 2015, we issued an updated research report on Bruker CorporationBRKR , a developer of proprietary life science and materials research systems and associated products. Earlier, Bruker delivered mixed first-quarter 2015 financial results wherein earnings beat the Zacks Consensus Estimate but the top line missed the mark.

On a positive note, the company's Nano Surfaces segment is poised on a healthy growth track. Following a challenging 2013, this segment returned to organic growth in 2014. In the first quarter of 2015, the segment posted low single-digit organic revenue growth, on par with management's expectation, primarily driven by a strong performance at the AXS division. This trend is expected to continue through the rest of 2015.

Moreover, over the recent past, Bruker has made significant progress in its MALDI product line with a handful of key product launches. In June, the company revealed its MALDI Tissuetyper solution, based on the new high-speed instrument platform - rapifleX MALDI-TOF Mass Spectrometry system.

Apart from MALDI Tissuetyper, the latest additions include the MALDI Sepsityper solution and MALDI Biotypersmart system, both of which received the CE Mark in Europe during the first quarter. The MALDI Sepsityper is used for rapid microbial identification from positive blood cultures, whereas the new MALDI Biotypersmart system provides high-speed analysis when integrated with the new MALDI Sepsitype.

Recently, the company also introduced a major version 3.0 expansion of the proven Mycobacteria Library for research use only on the MALDI Biotyper microbial mass spectrometry system.

Presently, we are encouraged by the company's profitable scope of expansion in the nuclear magnetic resonance (NMR) as well as preclinical imaging (PCI) industries. Although Bruker's performance in 2014 was affected by weak demand for its NMR products, management believes the overall healthy NMR market will help this segment to rebound soon.

On the flip side, a number of Bruker's peers have expanded their market share in recent years through business combinations. As a result, Bruker faces subsequent competition from many large enterprises in a consolidating industry. Also, currency fluctuations remain a drag on Bruker's top as well as bottom line, going ahead.

The stock currently carries a Zacks Rank #3 (Hold).

Key Picks from the Sector

Some better-ranked stocks in the broader healthcare are Cepheid CPHD , Masimo Corporation MASI and Natus Medical Inc. BABY . All the three stocks hold a Zacks Rank #2 (Buy).

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CEPHEID INC (CPHD): Free Stock Analysis Report

MASIMO CORP (MASI): Free Stock Analysis Report

NATUS MEDICAL (BABY): Free Stock Analysis Report

BRUKER CORP (BRKR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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