Standard BioTools Get a Buy Rating, Analyst Cites Unique Technology, Management and Board

KeyBanc Capital Markets initiated coverage on Standard BioTools Inc LAB with an Overweight rating and a price target of $4.

The analyst says Standard BioTools is a unique and attractively valued way to invest in the Life Science Technology industry and the new generation of biotechnology research called spatial biology. 

It estimates that double-digit market growth can support long-term growth in the mid/upper teens for the company.

KeyBanc analyst expects the team can execute on cost reductions, growth, and consolidation of the industry. 

The company is focused on cutting costs and growing the core business initially. The analyst says the earnings results have already shown a 46% reduction in operating loss. Accelerating organic growth with new instrument introductions drove 1Q23 proteomic growth of 12% and a targeted genomics decline of 28%. 

From no blended growth in 2023, the analyst estimates 18% organic growth in FY24.

In April last year, Fluidigm completed a strategic capital infusion from Casdin Capital and Viking Global Investors and renamed Standard BioTools.

The company appointed a new management team and additional board members with significant experience to reinvigorate growth and enhance the product portfolio.

Price Action: LAB shares are up 4.17% at $2.38 on the last check Wednesday.