Bio-Techne's Planned Wilson Wolf Acquisition Underappreciated by Investors, RBC Says

MT Newswires Live05-15

Bio-Techne's (TECH) planned full acquisition of Wilson Wolf is underappreciated by the market, despite its expected boost to Bio-Techne's exposure to cell therapy, RBC Capital Markets said in a note Thursday.

Bio-Techne owns 20% of the cell therapy tools company and plans to fully acquire it by the end of 2027. Assuming that Wilson Wolf maintains its double-digit growth and 70% plus earnings before interest, taxes, depreciation and amortization margins, and the deal is viewed as a "jewel" at about 4.4x trailing sales, the analyst said.

It adds over 100 basis points to Bio-Techne's structural growth and increases its exposure to the cell therapy market to about 15% of sales, the highest in RBC's coverage, despite mixed early results in cell therapy, with activity and pipelines still strong, the analyst said.

"And when the market is ready to look out to 2027, we think investors will wake up to the transformative acquisition of Wilson Wolf that is not yet fully appreciated," the analyst added.

RBC resumed coverage of Bio-Techne with an outperform rating and a $62 price target.

Price: 44.78, Change: +0.04, Percent Change: +0.09

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