Bio-Techne initiated with a Sector Perform at RBC Capital

RBC Capital analyst Conor McNamara initiated coverage of Bio-Techne with a Sector Perform rating and $89 price target. The analyst warns that revenue targets are too high and a management transition could create disruption. McNamara further states that Bio-Techne strategy of acquiring emerging companies and technologies will be difficult going forward as the M&A environment has become more competitive. The analyst adds that he prefers to wait for a better entry point as the stock is "one of the most expensive" names in the LST&Dx sector at 10.8-times expected forward revenue.