Citi opens ‘positive catalyst watch’ on Bruker into earnings

Citi analyst Patrick Donnelly opened a “90-day positive catalyst watch” on shares of Bruker while keeping a Buy rating on the name with a $95 price target ahead of the Q3 report. The analyst says recent management commentary is suggestive of strong instrument orders, continued organic growth execution as compared to peers, elevated backlog providing visibility into the second half of 2023 and fiscal 2024 revenue, and a “valuation disconnect to fundamentals.” The firm says believes Bruker was a key beneficiary of the stimulus program in China and believes its outsized exposure to the academic/government end market in the country has resulted in continued strength relative to instrument peers.