Bio-Rad Laboratories (BIO): Evaluating Valuation Following EZ-Check Salmonella Kit Launch and Major Industry Certifications

If you’re watching Bio-Rad Laboratories (BIO) right now, you’re probably sizing up the company’s big reveal: the new EZ-Check Salmonella spp. Kit. This rapid test, designed for quick and reliable detection of Salmonella in food and environmental samples, just picked up significant third-party validations. Both AOAC International and AFNOR have given it the green light, signaling real credibility. With food safety taking center stage globally and regulations tightening up, Bio-Rad’s latest launch could open new doors for growth, especially among food producers eager to reduce contamination risk.

This product launch comes at a time when Bio-Rad Laboratories’ stock has experienced a mix of headwinds and quiet optimism. Although shares have slipped around 4% over the past year and remain down roughly 7% year-to-date, momentum has picked up recently, with the price jumping more than 35% in the past 3 months. Against a backdrop of modest revenue growth but weaker net income, the clear uptick suggests the market may be re-evaluating its outlook as new products like this hit the market.

After this recent surge, is Bio-Rad Laboratories a value play, or is the market already factoring in more growth than it can deliver?

Most Popular Narrative: 6.9% Undervalued

According to the community narrative, Bio-Rad Laboratories is seen as undervalued based on analysts’ fair value projection. The consensus view anticipates transformative growth engines ahead, despite lingering cost pressures.

Recent launch and expansion of the QX Continuum and QX700 Series ddPCR platforms, alongside the acquisition of Stilla Technologies, positions Bio-Rad to accelerate its share capture as demand grows for advanced molecular diagnostics and precision medicine tools. This is expected to drive ddPCR revenue growth and improve margins through higher consumable pull-through and broader assay adoption.

Wondering what is fueling this bold valuation? The narrative’s backbone is a set of bullish growth moves and ambitious profitability forecasts, numbers you might not expect in today’s market. Want to discover the unexpected assumptions driving this premium valuation? Keep reading for the story behind these projections and what could set Bio-Rad apart.

Result: Fair Value of $326.5 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent softness in instrument demand and shrinking margins could quickly shift sentiment if these headwinds intensify or last longer than expected.

Find out about the key risks to this Bio-Rad Laboratories narrative.

Another View: Discounted Cash Flow Perspective

Taking a step back from analyst price targets, our DCF model offers a different perspective on Bio-Rad’s value. Its signals point to a much larger potential gap between price and fair value. Which estimate feels more convincing to you?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Bio-Rad Laboratories for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Bio-Rad Laboratories Narrative

If you see things differently or want to dig into the numbers yourself, you can build your own perspective in just a few minutes. do it your way.

A great starting point for your Bio-Rad Laboratories research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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