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Bruker (BRKR) Strong on Product Launches Amid Currency Woes

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On Sep 18, we issued an updated research report on leading manufacturer of proprietary life science and materials research systems, Bruker Corporation (BRKR - Free Report) .

Over the last three months, this Billerica, MA-based company has gained 7.1% as compared with the industry’s 4%. The company’s impressive second-quarter 2017 earnings and revenue growth has bolstered market confidence leading to a further rally in its share price.

Of late, the company has been witnessing growth in its Nano Surfaces business on restructuring and cost-reduction actions. The portfolio also got a boost from the acquisition of Hysitron nano indenting products at the beginning of 2017 along with improved results at the AXS business. Moreover, we are upbeat about thecompany’s recent launch of D8 VENTURE BIOTOOLS for laboratory macromolecular crystallography which will be part of the AXS segment within Bruker Nano. Additionally, the company gained traction in the semiconductor metrology markets along with certain industrial and applied end-market segments.

This Zacks Rank #3 (Hold) company has been consistently introducing products in its portfolio. The company recently unveiled the D8 DISCOVER Plus X-ray diffraction (XRD) system at the Japan Analytical Scientific Instruments Show (JASIS). We are also encouraged by the launch of EIGER2 R 500K — the latest generation of Hybrid Photon Counting (HPC) pixel detectors — by Bruker and DECTRIS. Notably, built by DECTRIS, the EIGER2 R 500K detector has been integrated into Bruker’s D8 ADVANCE and D8 DISCOVER instrument platforms to enhance several X-ray diffraction (XRD) applications.

We are also impressed with Bruker’s latest product developmental activities under the Nuclear Magnetic Resonance (NMR) spectroscopy business. The company’s line of launches includes the AVANCE NEO platform, a next-generation NMR console and S8 TIGER Series 2 spectrometer. Management also claims to have made technical and quality progress with its high-temperature superconducting (HTS) tapes. Management expects HTS to boost its ultra-high field 1.2 gigahertz NMR business in 2018 and beyond. We are also upbeat about the company’s receipt of FDA approval for adding 144 new species to its MALDI Biotyper-CA system for efficient microbial identification. Notably, MALDI Biotyper is the company’s latest revolutionary approach for the analysis of microorganisms.

Of late, Bruker has been working on chalking out strategies to improve its financial performance. These initiatives include the divestiture of certain non-core businesses, outsourcing of various manufacturing activities and transferring or ceasing of operations at certain facilities. Meanwhile, the company’s raised revenue guidance raises optimism.

On the flip side, Bruker conducts 80% of its business in international markets. As a result, adverse currency fluctuations continue to result in losses for the company. Moreover, headwinds such as unfavorable economic conditions and intense competition continue to pose threats.

Key Picks

A few better-ranked medical stocks are Edwards Lifesciences Corporation (EW - Free Report) , Amedisys, Inc. (AMED - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) .  Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Amedisys and IDEXX carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19.8% over the last six months.

Amedisys has a long-term expected earnings growth rate of 18.2%. The stock has gained around 3.3% over the last six months.

IDEXX has a long-term expected earnings growth rate of 19.8%. The stock has gained around 45% over the last year.

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