Danaher, Cryoport, Sartorius win Buy as Guggenheim expands bioprocessing coverage
Guggenheim Partners expanded its coverage on the bioprocessing industry on Thursday, granting Buy recommendations for Danaher (NYSE:DHR), Cryoport (NASDAQ:CYRX), and Sartorius (OTCPK:SARTF) and a Neutral rating for Maravai LifeSciences (NASDAQ:MRVI).
Analyst Subbu Nambi projected a high-single-digit revenue growth for the industry over the next few quarters as post-COVID headwinds, including overcapacity and inventory destocking, subside along with concerns over the Biosecure Act.
Nambi also highlighted the bioprocessing industry’s growing importance, arguing that the FDA has so far approved more than 100 monoclonal antibodies, with its approvals accelerating over the past decade.
“Moving forward, we expect biologics to continue to account for a growing proportion of biopharmaceutical development pipelines and marketed products,” Nambi wrote.
Washington D.C.-based Danaher (NYSE:DHR) received a $275 target from Guggenheim due to its operating model, management, and cash position, which the analyst said would allow the company to generate inorganic growth despite a potential slowdown in core growth.
Calling Cryoport (NASDAQ:CYRX), a market leader in cryologistics, a key step in bioprocessing and biostorage supply chains, Nambi granted the stock an $11 price target, noting an underappreciated valuation.
Meanwhile, German-based Sartorius (OTCPK:SARTF) received a €249-per-share target, indicating a 19% premium to peers’ 2026E median EV/EBITDA multiple of 18.0x to reflect its near pure-play status and its exposure to high-growth bioprocessing.
Maravai (NASDAQ:MRVI), the San Diego, CA, developer of CleanCap mRNA technology, was the lone neutral-rated stock, with Guggenheim seeing more attractive pockets in the industry. The analyst argued that after pandemic-era advancements, the mRNA space, where Maravai (MRVI) is specialized, will take more time to expand.