Azenta (AZTA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Brendan Smith from TD Cowen maintained a Hold rating on the stock and has a $30.00 price target.
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Brendan Smith has given his Hold rating due to a combination of factors surrounding Azenta’s strategic initiatives and current market conditions. The company’s leadership, under CEO John Marotta, is actively working on restructuring and rightsizing its core businesses, which includes focusing on portfolio, structure, and personnel processes. These efforts are aimed at driving long-term growth, particularly in the core SMS and Multiomics segments, through investments in next-generation automation and expanded offerings.
While Azenta is making strategic moves such as selling off B Medical and exploring M&A opportunities, the primary focus remains on addressing sector headwinds and maximizing core growth opportunities. The management’s plan includes streamlining operations and enhancing accountability, with a conservative outlook for modest topline growth and EBITDA improvement by FY25. Despite these positive steps, the ongoing macroeconomic uncertainties and the need for further execution of these strategies contribute to the Hold rating, as the company navigates through its restructuring phase.