Stephens downgrades Azenta after results, sees range-bound stock

Stephens analyst Jacob Johnson downgraded Azenta to Equal Weight from Overweight with a price target of $60, down from $65. The company’s fiscal Q1 results fell short of consensus estimates and its Q2 guidance also fell below consensus, which implies a "steep back half ramp," the analyst tells investors in a research note. As a result, the firm is taking a more conservative approach to fiscal 2023 estimates, assuming 23% revenue growth verses guidance calling for 30%. It thinks the shares will be range-bound for at least a couple of quarters until Azenta demonstrates revenue acceleration and margin expansion.