What Do Bio-Techne’s Newly Added Risk Factors Reveal?

Minnesota-based Bio-Techne (TECH) sells tools and reagents for medical research and clinical diagnostic. It serves customers around the world and generates about 46% of its revenue outside the U.S.

Let’s take a look at the company’s latest financial performance and risk factors.

Bio-Techne’s Fiscal Q4 Financial Results

For its fiscal Q4 2021 ended June 30, Bio-Techne reported a 47% year-over-year revenue increase to $259 million, exceeding the consensus estimate of $244.62 million. Adjusted EPS was $1.87 compared to $1.00 a year ago and beat the consensus estimate of $1.70.

For Fiscal 2021, revenue rose 26% to $931 million. Adjusted EPS for the year rose to $6.75 from $4.55 in the previous year. (See Bio-Techne stock charts on TipRanks).

Bio-Techne’s Risk Factors

The new TipRanks Risk Factors tool reveals 26 risk factors for Bio-Techne. The company introduced 15 new risk factors in its Fiscal 2021 annual report across various categories.

In a newly added Finance and Corporate risk factor, Bio-Techne tells investors that it routinely acquires other businesses to drive growth. It says it has completed 17 acquisitions in the last nine years. However, the company cautions that it may not complete future acquisitions at the same rate as it has done in the past. Additionally, it says that promising businesses are difficult to identify, and factors such as valuation and competition from other prospective buyers can make completing these transactions difficult.

Bio-Techne warns in a newly added Tech and Innovation risk factor that infringement of its intellectual property rights could cause it competitive injury. It says that it operates in countries that do not have the same level of protection of proprietary information as in the U.S. Therefore, Bio-Techne might incur significant costs to protect its intellectual property in other countries, which could adversely impact its business.

Finance and Corporate is Bio-Techne’s top risk category, accounting for 23% of the total risks. That is below the sector average at 29%. Bio-Techne’s shares have gained about 56% since the beginning of 2021.

Analysts’ Take

Last week, Argus Research analyst David Toung reiterated a Buy rating on Bio-Techne stock and raised the price target to $540 from $490. Toung’s new price target suggests 9.09% upside potential.

The analyst noted that Bio-Techne delivered strong fiscal Q4 results and that the company is meeting robust demand for its supplies from the developments of COVID-19 vaccines and biologic drugs.

Consensus among analysts is a Strong Buy based on 6 Buys and 1 Hold. The average Bio-Techne price target of $534.33 implies 7.94% upside potential to current levels.