The analysts acknowledge that PKI continues to execute well across all its product lines. The company has established itself as the market leader, particularly in genetic screening segments and holds one of the top two market share positions in several important subsets of the life sciences technology and genetic screening segments. However, the analysts think growth in these areas will be offset by the company's exposure to more cyclical end-markets (non-healthcare end-markets constitute 40% of PKI sales). The analysts contend that given end market disruptions and macroeconomic uncertainty, upside and downside risks are balanced over the near term. Moreover, though the analysts believe that stimulus spending may help the research business; they are concerned about the resulting deterioration of the imaging business. The analysts are apprehensive that the company's exposure to weak industrial demand, poor end market visibility, relatively instrument-heavy product mix, lack of differentiated technology offerings, and below-peer margins might result in an unattractive risk-reward for the stock. The estimated return over the current price is 4.8%.
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