Bio-Rad Laboratories' (BIO) sales growth should recover in 2027 following idiosyncratic product headwinds, RBC Capital Markets analysts said in a Thursday note.
Analysts said that the company's new management will make efforts to structurally improve its margin profile.
RBC said that some of the challenges Bio-Rad faces are company-specific, noting, for instance, that demand for Bio-Rad's process chromatography products is negatively impacted this year by the US Center for Disease Control's revisions of the childhood and adolescent immunization schedule.
Analysts said that the company's near-term earnings before interest and taxes, or EBIT, margin growth target in the mid-teens, up from the 11% guidance for 2026, strongly signals meaningful restructuring ahead.
RBC resumed coverage on the stock with an outperform rating and a $320 price target.
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