Revvity (RVTY) shares have moved slightly higher this week, prompting some investors to take a closer look at recent performance. Over the past month, the stock has gained 7%, and the company’s annual revenue growth continues.
After a choppy start to the year, Revvity’s momentum has picked up noticeably. The share price has gained nearly 19% over the past quarter, even as the total shareholder return sits at -8% for the past 12 months. This suggests investors are warming back up to its growth prospects following some mixed signals in earlier periods.
With Revvity’s shares rebounding and a modest discount to analyst targets still present, the big question remains: is there real value left on the table, or has the market already factored in the company’s rebound and future growth?
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Most Popular Narrative: 7% Undervalued
Revvity closed at $105.57, which sits a little below the most popular narrative’s fair value estimate of $113.67. This sets the stage for a lively debate about whether the market is overlooking the potential from recent operational shifts and buyback activity.
Ongoing shift in product mix toward higher-margin, software-enabled and consumables-driven offerings (e.g., SaaS Signals, reagents, new IDS i20 platform), along with structural cost actions, are expected to materially expand operating and net margins. In 2026, operating margin is projected to start at a higher 28% baseline.
What’s really fueling this bullish narrative? Analysts are betting on a future profit margin jump and a dramatic step up in earnings. The secret sauce behind the numbers? Dive deeper to discover the aggressive assumptions underpinning this valuation.
However, persistent uncertainty in key international markets like China and tougher reimbursement trends could quickly undermine Revvity’s accelerating recovery story.
Shifting focus to the SWS DCF model offers a fresh perspective. Our DCF model values Revvity at $128.19 per share, which is well above both its current share price and typical analyst estimates. This result presents Revvity as even more undervalued by this method. Could this suggest the market is missing something significant, or are the DCF model’s assumptions too optimistic?
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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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