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UBS Initiates Coverage of Bruker With Buy Rating

NEW YORK – UBS on Friday initiated coverage of life science tools firm Bruker with a Buy rating and a price target of $70.

In a research note, analyst John Sourbeer said the bank believed factors including Bruker's increasing exposure to consumables and pharma end markets, as well as funding from the US federal government's CHIPS and Science Act, will drive growth at the company.

Sourbeer cited products including Bruker's MALDI Biotyper and timsTOF mass spectrometry platforms along with investment in proteomics, spatial biology, and molecular diagnostics as drivers of increased consumables revenue, which he said remains below the industry average despite improvements over the last five years.

According to UBS, the MALDI Biotyper had an install base of 4,400 as of 2021, and Bruker continues to sell around 400 to 500 units per year. The timsTOF has an install base of more than 500 instruments.

Sourbeer also noted that Bruker's exposure to biopharma remains below the industry average but is poised to grow due to products including the timsTOF. He said that a third of timsTOF placements have been with biopharma firms or CROs.

More generally, UBS projected that the life science tools market will grow in the high-single digits, "powered by breakout opportunities like proteomics."

In Friday afternoon trade on the Nasdaq, shares of Bruker were up around 2 percent at $57.36.