Despite Higher Valuations, Some Life Sciences Tools Stocks Create Good Opportunities: Analyst
BofA Securities reports that the Life Sciences Tools sector struggled in fiscal year 2024.
Spending by pharmaceutical and biotech companies dropped after pandemic-related overspending, and demand in China stayed weak. This led some Life Sciences companies to lower their already-conservative fiscal year revenue forecasts as the year progressed.
For most of fiscal year 2024, Life Sciences company valuations remained higher than pre-COVID levels but declined after the U.S. elections.
Looking ahead to fiscal year 2025, initial forecasts and management comments suggest a mixed outlook.
The first half of the year is expected to mirror the challenges of late fiscal year 2024, while the second half could see improvement due to easier year-over-year comparisons, potential economic stimulus in China, and a broader market recovery.
After being cautious for most of the past year, the analyst sees some positive signs. The bioprocess market, important for certain Core Tools vendors, has been improving steadily and is expected …
Full story available on Benzinga.com