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Bruker (BRKR) Buys Active Spectrum to Boost MRI Business
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Bruker Corporation (BRKR - Free Report) , a leading manufacturer of scientific instruments for molecular and materials research, recently announced the acquisition of Active Spectrum Inc. This Foster City, CA-based company is a manufacturer of innovative micro-ESR (Electron Spin Resonance) spectroscopy systems used for teaching and research of chemistry as well as applied and industrial applications. Financial terms of the deal have not been disclosed.
Over the past six months, Bruker has underperformed the Zacks categorized Instruments-Scientific Sub industry. Currently, the stock is down 11.9%, compared to the broader industry’s gain of 2.9%. However, on a positive note, Bruker ended the third quarter of 2016 with an earnings and revenue beat.
Accordingly, Bruker’s estimate revision trend for the current year is favorable with seven estimates moving up and no movement in the opposite direction. Current estimates have accordingly increased by $0.01 over the past two months, indicating bullish prospects. The company's solid cash balance position on the back of improved free cash flow is indicative of strong fundamentals.
Coming back to the acquisition, micro-ESR systems built by Active Spectrum would expand Bruker's research and ESR product line. The acquired company will be integrated into Bruker's ESR/EPR portfolio and distributed through the company’s global sales, service and channel partner network in the applied, industrial and education markets.
Active Spectrum's micro-ESR system is used for the detection of paramagnetic species, and its applications that include the detection of reactive oxygen and nitrogen species. In addition, micro-ESRs are excellent teaching tools that can be used for undergraduate chemistry research.
Management claims that this particular buyout would strengthen Bruker’s Biospin group under its Scientific Instruments segment. The group comprises Bruker Magnetic Resonance and Preclinical Imaging divisions, which designs life science tools based on the magnetic resonance technology. The integration of Active Spectrum's micro-ESR systems offer an outstanding platform for Biospin Magnetic Resonance Imaging (MRI) franchise to develop tailored solutions for the industrial and applied markets using very compact magnetic resonance technology.
As per a P&S Market Research Report, the global MRI market is expected to grow at a CAGR of 5.0% during 2016–2022. The market is growing at a rapid pace on escalating healthcare expenditure, growing aged population, increasing need of healthcare infrastructure and detection of chronic diseases. Accordingly, we believe the acquisition of Active Spectrum is a strategic fit in enhancing Bruker’s share in the global MRI market.
In this regard we note that in the recently concluded third quarter, Bruker’s Biospin group has reportedly done well with the main growth driver being the MRI business. The company has made technical and quality progress with its high temperature superconducting (HTS) tapes which the management expects would boost the MRI business in forthcoming years. Also, the company witnessed high demand for MRI products as well as the new service and aftermarket offering called LabScape in the first nine months of 2016.
Zacks Rank & Other Key Picks
Bruker currently carries a Zacks Rank #2 (Buy). Other favorably ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 26% over the last one year compared to the S&P 500’s 12.6%. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 22% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 137.3% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Bruker (BRKR) Buys Active Spectrum to Boost MRI Business
Bruker Corporation (BRKR - Free Report) , a leading manufacturer of scientific instruments for molecular and materials research, recently announced the acquisition of Active Spectrum Inc. This Foster City, CA-based company is a manufacturer of innovative micro-ESR (Electron Spin Resonance) spectroscopy systems used for teaching and research of chemistry as well as applied and industrial applications. Financial terms of the deal have not been disclosed.
Over the past six months, Bruker has underperformed the Zacks categorized Instruments-Scientific Sub industry. Currently, the stock is down 11.9%, compared to the broader industry’s gain of 2.9%. However, on a positive note, Bruker ended the third quarter of 2016 with an earnings and revenue beat.
Accordingly, Bruker’s estimate revision trend for the current year is favorable with seven estimates moving up and no movement in the opposite direction. Current estimates have accordingly increased by $0.01 over the past two months, indicating bullish prospects. The company's solid cash balance position on the back of improved free cash flow is indicative of strong fundamentals.
Coming back to the acquisition, micro-ESR systems built by Active Spectrum would expand Bruker's research and ESR product line. The acquired company will be integrated into Bruker's ESR/EPR portfolio and distributed through the company’s global sales, service and channel partner network in the applied, industrial and education markets.
Active Spectrum's micro-ESR system is used for the detection of paramagnetic species, and its applications that include the detection of reactive oxygen and nitrogen species. In addition, micro-ESRs are excellent teaching tools that can be used for undergraduate chemistry research.
Management claims that this particular buyout would strengthen Bruker’s Biospin group under its Scientific Instruments segment. The group comprises Bruker Magnetic Resonance and Preclinical Imaging divisions, which designs life science tools based on the magnetic resonance technology. The integration of Active Spectrum's micro-ESR systems offer an outstanding platform for Biospin Magnetic Resonance Imaging (MRI) franchise to develop tailored solutions for the industrial and applied markets using very compact magnetic resonance technology.
BRUKER CORP Price
BRUKER CORP Price | BRUKER CORP Quote
As per a P&S Market Research Report, the global MRI market is expected to grow at a CAGR of 5.0% during 2016–2022. The market is growing at a rapid pace on escalating healthcare expenditure, growing aged population, increasing need of healthcare infrastructure and detection of chronic diseases. Accordingly, we believe the acquisition of Active Spectrum is a strategic fit in enhancing Bruker’s share in the global MRI market.
In this regard we note that in the recently concluded third quarter, Bruker’s Biospin group has reportedly done well with the main growth driver being the MRI business. The company has made technical and quality progress with its high temperature superconducting (HTS) tapes which the management expects would boost the MRI business in forthcoming years. Also, the company witnessed high demand for MRI products as well as the new service and aftermarket offering called LabScape in the first nine months of 2016.
Zacks Rank & Other Key Picks
Bruker currently carries a Zacks Rank #2 (Buy). Other favorably ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 26% over the last one year compared to the S&P 500’s 12.6%. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 22% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 137.3% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>