Growth has historically been a challenge for Bruker (BRKR), as management was previously more focused on margin improvement and hadn’t historically done a great job of fostering R&D (or M&A) aimed at growing the company’s addressable markets outside of more staid legacy research and industrial markets in nuclear magnetic resonance (or NMR) spectroscopy and matrix-assisted laser desorption/ionization (or MALDI) spectroscopy.
That was the story around seven and a half years ago, and I’m happy to say that management has managed to find a better path that combines improved revenue growth prospects and better margins, including margin uplift from a larger/richer aftermarket business. In particular, management has highlighted multibillion-dollar opportunities in a range of life science and clinical markets, while meaningfully improving margins since that 2014 article.
Bruker still faces meaningful competition from Agilent (A) and many others, and it’s fair to note that the company doesn’t have the attractive leverage to bioproduction like Danaher (DHR) or Thermo Fisher (TMO) (or Agilent). Still, on the basis of what Bruker does have, including sizable addressable life science research and clinical market opportunities, the growth opportunity here looks good. Valuation is another story, but that’s not so surprising for a life sciences equipment company today.
Read more here:
Bruker's Renewed Focus On Growth Has Lit A Fire Under The Shares
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