Revvity (RVTY) Is Up 11.9% After Announcing Sanofi Alliance to Expand Diabetes Diagnostics Portfolio

• Revvity recently announced an alliance with Sanofi to expand its type 1 diabetes diagnostics portfolio, introducing a population-scale 4-plex in vitro diagnostic assay with the aim of improving early detection and regulatory reach in key markets.
• This collaboration may significantly broaden access to advanced diabetes screening solutions, supporting earlier interventions in a condition for which 90% of new cases occur without a family history.
• We’ll explore how Revvity’s expanded diabetes diagnostics program with Sanofi could influence its outlook for recurring, higher-margin revenue.

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Revvity Investment Narrative Recap

Owning Revvity asks you to believe its strengths in diagnostics, innovation, and diversified health science solutions can offset near-term headwinds from regulatory changes and reimbursement pressures in key markets like China. The recent Sanofi alliance expands potential recurring, higher-margin diabetes diagnostics revenue, but does not immediately resolve exposure to global cost-containment risk, which remains a significant factor that could pressure operating margins in the short term.

Among recent announcements, the September rollout of Living Image Synergy AI software stands out as particularly relevant to Revvity’s value proposition. With its emphasis on integrated digital tools and workflow efficiency for in vivo imaging, this supports the shift toward software-driven, higher-margin offerings, echoing a catalyst underpinning the narrative around margin expansion.

However, even amid positive product momentum, investors should be aware that persistent weakness in academic and government funding could quickly...

Read the full narrative on Revvity (it's free!)

Revvity's narrative projects $3.3 billion revenue and $599.9 million earnings by 2028. This requires 5.4% yearly revenue growth and an increase of $321.2 million in earnings from $278.7 million today.

Uncover how Revvity's forecasts yield a $115.19 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community fair value estimates range from US$115.19 to US$136.50, indicating views of significant undervaluation versus current prices. Some participants focus on accelerating cost-containment pressures, which may weigh on margins, highlighting why it pays to compare several viewpoints before making informed decisions.

Explore 2 other fair value estimates on Revvity - why the stock might be worth as much as 45% more than the current price!

Build Your Own Revvity Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Revvity research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Revvity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Revvity's overall financial health at a glance.

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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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