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BTIG Downgrades Bruker, Still Likes Long-Term Story

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BTIG Downgrades Bruker, Still Likes Long-Term Story

BTIG has downgraded Bruker Corporation (NASDAQ: BRKR) to Neutral from Outperform, saying the "margin story continues to play out but [we] are hesitant to expect upside to its current organic growth forecasts this early in 2016."

The scientific equipment maker reported first quarter EPS of $0.21, beating BTIG's expectation by $0.05 and consensus estimate by $0.06. The company generated revenue of $375.4 million in the period, also exceeding the Street's forecast of $358.5 million.

Analyst Dane Leone said revenues grew 5.6 percent organically, which also beat his about 2 percent estimate, helped by strength within the Nuclear Magnetic Resonance (NMR) business. Operating margin rose 245bps, and Leone thinks the next leg of margin expansion will come from after-market revenues.

Furthermore, the analyst noted that although NMR strength continues, comps will become more difficult during the second half of 2016.

Related Link: Benzinga's Top Initiations: Barclays Initiates Coverage On Bruker

"Backlog growth seemed healthy across all business segments, but for the larger items within NMR, predicting quarterly conversion of backlog is difficult," Leone elaborated.

However, the analyst likes the company's long-term story, saying strong margins for the third quarter in a row indicate improving organizational efficiency.

Bruker expects full-year earnings in the range of $0.97 to $1.02 per share, while the Street expects earnings of $1.01 a share and BTIG estimates earnings of $1.02 a share.

Shares of Bruker closed Wednesday's trading session at $27.65, and the stock was down 2.6 percent in Thursday's pre-market session.

Latest Ratings for BRKR

DateFirmActionFromTo
Jul 2019UpgradesSellNeutral
May 2019UpgradesMarket PerformOutperform
Apr 2019UpgradesBuy

View More Analyst Ratings for BRKR
View the Latest Analyst Ratings

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