Bio-Techne's growth strategy still includes M&A
Bio-Techne may be waiting for the mergers and acquisitions market to calm before it resumes its acquisition strategy. The Minneapolis-based maker of biotechnology reagents, instruments and clinical diagnostic products made six deals in 2014 but has announced only one so far in 2015.
Leerink analyst Dan Leonard wrote in a research note last week that Bio-Techne's growth is dependent on overall organic revenue growth, China's increased funding on life sciences and health care and a more aggressive merger and acquisition strategy.
Leonard estimates that Bio-Techne has 80 acquisition targets in mind in a variety of sizes and levels of actionability. He acknowledges that market conditions may force the company to focus on immediate internal growth prospects before looking outside.
"We expect executing on acquisitions will remain a prominent part of Bio-Techne's strategy," Leonard wrote. "However, we believe that larger acquisitions might be more difficult to consummate in the current choppier market environment."
Patrick Kennedy
Holding firm on UnitedHealth Group
Wedbush analyst Sarah James offered a quick note to investors after UnitedHealth Group announced third-quarter earnings on Thursday.
The Minnetonka-based diversified health company reported $1.65 earnings per share for the quarter, a penny above analyst consensus estimates.
James maintained her buy rating of "outperform" and a $143 per share price target, writing: "Our valuation is based on a modestly positive outlook for the multiline group. We continue to watch for signs of cost increases; until these materialize we believe the group will trade in-line with the S&P 500."
Patrick Kennedy
Demand for key Polaris addition
The centerpiece of Polaris Industries' 2016 model year is the RZR XP Turbo, a side-by-side off-road vehicle that features a 925 cc engine and 144 horsepower. That vehicle was announced months ago and Polaris is starting to see a sales boost. Medina-based Polaris recently announced more additions to the 2016 lineup, including a four-seat version of the RZR XP Turbo.
James Hardiman covers the powersports industry for Wedbush and he recently checked with dealers to gauge the success of new models. In a note to investors last week, Hardiman wrote that September sales for Polaris were boosted by the launch of the new 2016 models. "Our dealer contacts reported that XP Turbo units were being presold before arrival and were being shipped based on geography," Hardiman noted.
Patrick Kennedy
