It may be indelicate to talk about beneficiaries of a deadly global pandemic, but the reality is that COVID-19 has created an unexpected surge in business for many life sciences companies. In the case of PerkinElmer (PKI), while the recent demand for real-time PCR workstations and kits, liquid handling systems, RNA extraction kits, and so on will fade, I believe the company may hold on to some long-term benefits, as customers have now seen what EUROIMMUN tools can do, and some will likely become long-term customers.
I expect at least a few more quarters of double-digit year-over-year revenue growth, and I’ve boosted my long-term revenue assumptions such that my long-term revenue growth rate moves up about a half-point to 6%. Longer-term opportunities remain in newborn testing (Vanadis), lab automation, lab informatics, and the OneSource management service, as well as EUROIMMUN test menu expansion. PerkinElmer is still not cheap by any standard approach, as is often the case with life sciences companies.
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COVID-19 Creates A Windfall For PerkinElmer, And Some Of The Benefits May Linger
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