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Bruker (BRKR) Rides High on Strong Nano Sales, New Buyouts

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On Dec 23, we issued an updated research report on Bruker Corporation (BRKR - Free Report) . The company’s recent acquisition and collaborations are a strategic fit. However, currency fluctuations remain a drag. The stock carries a Zacks Rank #3 (Hold).

In the past three months, shares of Bruker have rallied 21.4% compared with its industry’s 10.2% rise. A year-over-year uptick in constant currency revenue growth witnessed across all geographies also looks impressive.

Additionally, we are upbeat about strong organic revenue growth, driven by strength in the Bruker Scientific Instruments (BSI) and BEST segments.

The Bruker Nano Surfaces group improved significantly during the quarter, fueled by uptrends in life science mass spectrometry solutions and microbiology.

The company is gaining strong synergy benefits from the acquisitions of Anasys, JPK and Alicona. In April 2019, NANO closed the acquisition of RAVE, a semiconductor mass repair business. This buyout contributed significantly to the company’s top line during the third quarter of 2019.

NANO's advanced x-ray business grew on consistent demand from academic and government customers. NANO surface tools revenues increased, courtesy of these integrations. The NANO group witnessed a high single-digit revenue rise in the last reported quarter on an organic basis, led by progress in all of NANO’s divisions.

However, a competitive landscape and macroeconomic woes pose challenges. Also, the contraction in the operating margin is concerning.

Key Picks

Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , National Vision Holdings, Inc (EYE - Free Report) and ResMed Inc (RMD - Free Report) .

Haemonetics currently has a Zacks Rank #2 (Buy) and a projected long-term earnings growth rate of 13.5%.

National Vision’s long-term earnings growth rate is estimated at 17.8%. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ResMed’s long-term earnings growth rate is estimated at 14%. It currently flaunts a Zacks Rank #1.

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