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William Blair & Company. (10/6/11). "Press Release: Initiation of Research Coverage. Bruker Corporation". Chicago, IL.
|Organisation||William Blair & Company LLC|
|Group||William Blair (Group)|
|Organisation 2||Bruker Corporation (Nasdaq: BRKR)|
|Group||Bruker Corporation (Group)|
|Product||financial research (analyst)|
|Product 2||analytical instrument|
|Index term||Bruker Corp–William Blair: analyst coverage, 201110– initiated with outperform rating by analyst Amanda Murphy|
|Person||Murphy, Amanda (William Blair 201110 Analyst)|
William Blair & Company initiated research coverage of Bruker Corporation (BRKR $12.52), a manufacturer of high-performance instruments for scientific analysis, with an Outperform rating and Core Growth company profile.
Analyst Amanda Murphy estimated that the company would generate earnings of $0.89 per share in 2011 and $1.05 per share in 2012.
"Bruker is one of the most-well-diversified life sciences tools companies from an end-user and geographic perspective," Murphy said. "Bruker remains focused on new product introductions (including introducing less expensive versions of its high-end instrumentation into the midmarket) and further diversification in an effort to reduce exposure to any one segment. The company has been expanding into new applied markets by introducing more applications and software onto its existing hardware platforms and making acquisitions that provide a platform to transition legacy Bruker platforms into the applied space. The company invests more funds into research-and-development than its competition, and with its focused approach on high-end life sciences instrumentation, Bruker has built a strong brand reputation and robust IP portfolio."
Murphy continued, "Bruker has reported a lower operating margin than other companies in the life sciences instrumentation business, in part the result of its relatively high R&D investment. The company has been successfully expanding gross margin over the past few years, however, driven by increased fixed cost leverage, enhanced product design, and a recent initiative to offshore manufacturing of components and subunits. We believe margin expansion should help fuel long-term earnings growth in the midteens. In our view, Bruker offers the opportunity to invest in a high-quality company with a strong management team, long operational history, diversified revenue base, strong organic revenue growth opportunities, and high return on invested capital metrics."
William Blair & Company, L.L.C. is a global investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. We place a high value on the enduring nature of our client relationships, the quality of our products and services, and the continuity and integrity of our people. William Blair & Company is based in Chicago, with office locations including Boston; London; New York; San Francisco; Shanghai; Wilmington, Delaware; and Zurich. For more information, please visit www.williamblair.com.
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William Blair & Company, L.L.C. receives or seeks to receive compensation for investment banking services from companies covered in this research report. Investors should consider this report as a single factor in making an investment decision.
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Additional information is available upon request.
Current Ratings Distribution (as of 9/30/11)
Outperform (Buy): 59%
Market Perform (Hold): 31%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 8%
Market Perform (Hold): 2%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
Stock ratings, price targets, and valuation methodologies: William Blair & Company, L.L.C. uses a three-point system to rate stocks. Individual ratings and price targets (where used) reflect the expected performance of the stock relative to the broader market (generally the S&P 500, unless otherwise indicated) over the next 12 months. The assessment of expected performance is a function of near-, intermediate-, and long-term company fundamentals, industry outlook, confidence in earnings estimates, valuation (and our valuation methodology), and other factors. Outperform (O) - stock expected to outperform the broader market over the next 12 months; Market Perform (M) - stock expected to perform approximately in line with the broader market over the next 12 months; Underperform (U) - stock expected to underperform the broader market over the next 12 months; not rated (NR) - the stock is not currently rated. The valuation methodologies used to determine price targets (where used) include (but are not limited to) price-to-earnings multiple (P/E), relative P/E (compared with the relevant market), P/E-to-growth-rate (PEG) ratio, market capitalization/revenue multiple, enterprise value/EBITDA ratio, discounted cash flow, and others.
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