Bruker Consistently Gains From NANO & New Strategic Buyouts

On Mar 25, we issued an updated research report on Bruker Corporation BRKR. The stock carries a Zacks Rank #2 (Buy).

Bruker continues to witness a strong year-over-year rise in organic revenues. We look forward to the company's Scientific Instruments segment that has been performing well, driven by strong results from NANO and CALID groups.

Acquisitions like Anasys and JPK (completed last April and last July, respectively) contributed to the Bruker Nano Surfaces group’s top line.  The Nano Surfaces and Nano-analysis revenues increased in 2018 with substantial organic growth, supplemented by these two buyouts. The year 2019 is expected to be no exception. Notably, in mid-December 2018, NANO closed the transaction of Alicona Imaging, a provider of optical metrology products for lab and production applications, which will be accretive to the group's results in 2019.

Bruker Corporation Price

Bruker Corporation Price | Bruker Corporation Quote

Bruker is progressing well with three strategic buyouts, mirroring a majority interest in both Hain Diagnostics and Mestrelab along with Alicona Imaging acquisition. Further, the company made a progress in advancing the proteomics and phenomics initiative with the rollout of timsTOF Pro and the gradual uptake of NMR phenomics.

On the flip side, over the past month, shares of Bruker have underperformed the industry. The stock has inched up 0.3% compared with the industry’s rise of 3.1%.

The company’s core BEST group in 2018 was up modestly over 2017. This was driven by a pickup in superconductor demand in the back half of 2018 and the timing of some big science projects that offset the declines the company saw in the first half. Further, Bruker’s core BioSpin division faces a fierce competition from the companies offering magnetic resonance spectrometers. Through 2018, this business has been relentlessly sluggish. Notably, a competitive landscape and macroeconomic woes persistently pose challenges to the company.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Stryker Corporation SYK, Penumbra, Inc PEN and Varian Medical Systems, Inc VAR, each stock currently carrying the same solid Zacks Rank of 2 as Bruker. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stryker's long-term earnings growth rate is projected to be 10%.

Penumbra’s long-term earnings growth rate is predicted to be 20.9%.

Varian’s long-term earnings growth rate is forecast at 8%.

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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.


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