Citi has revised its price target for Revvity (RVTY, Financial), bringing it down from $155 to $135, while maintaining a Buy rating on the stock. This adjustment follows the company's updated guidance for fiscal year 2025, which considers potential tariff impacts, a more favorable foreign exchange environment, and adjustments to core business assumptions. The analyst highlights these factors in a recent research note, acknowledging the impact of lower group multiples on the price target. Despite the downward adjustment, the firm remains positive about Revvity's outlook, as reflected in their continued Buy rating.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Revvity Inc (RVTY, Financial) is $132.82 with a high estimate of $185.00 and a low estimate of $102.00. The average target implies an upside of 40.69% from the current price of $94.41. More detailed estimate data can be found on the Revvity Inc (RVTY) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Revvity Inc's (RVTY, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Revvity Inc (RVTY, Financial) in one year is $114.64, suggesting a upside of 21.43% from the current price of $94.41. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Revvity Inc (RVTY) Summary page.
RVTY Key Business Developments
Release Date: January 31, 2025
- Organic Revenue Growth: 6% in Q4 2024.
- Adjusted Operating Margin: 30.3% in Q4 2024.
- Adjusted EPS: $1.42 in Q4 2024.
- Total Adjusted Revenue: $730 million in Q4 2024.
- Full Year Adjusted Revenue: $2.76 billion in 2024.
- Free Cash Flow: $151 million in Q4 2024; $578 million for the full year 2024.
- Share Repurchase: $185 million in Q4 2024; $370 million for the full year 2024.
- Life Sciences Segment Revenue: $336 million in Q4 2024, up 5% organically.
- Diagnostics Segment Revenue: $393 million in Q4 2024, up 6% organically.
- Adjusted Tax Rate: 15.7% in Q4 2024; 18.4% for the full year 2024.
- Net Debt to Adjusted EBITDA Leverage Ratio: 2.3 times at year-end 2024.
- 2025 Organic Growth Outlook: 3% to 5% range.
- 2025 Adjusted Operating Margin Expansion: Expected 20 to 40 basis points.
- 2025 Adjusted EPS Guidance: $4.90 to $5.00.
- 2025 Free Cash Flow Expectation: Approximately $500 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revvity Inc (RVTY, Financial) achieved 6% organic growth in the fourth quarter, outperforming expectations.
- The company reported a strong adjusted operating margin of over 30% in the fourth quarter.
- Revvity Inc (RVTY) saw significant growth in its Life Science consumables, indicating a positive trend in pharma biotech customer behavior.
- The company successfully integrated recent acquisitions and capitalized on synergy opportunities, contributing to its growth.
- Revvity Inc (RVTY) expanded its strategic partnerships, including a notable collaboration with Genomics England for a large-scale genetic study.
Negative Points
- Revvity Inc (RVTY) continues to face challenges in its high-ticket life science instrumentation segment, with demand not yet fully normalized.
- The company anticipates a 1.5% foreign exchange headwind to overall revenue for 2025.
- Revvity Inc (RVTY) expects a higher adjusted tax rate of approximately 20% in 2025, up from 18.4% in 2024.
- The company's guidance assumes no significant improvement in end markets due to ongoing political and regulatory uncertainties.
- Revvity Inc (RVTY) plans to increase strategic internal investments in 2025, which may impact operating margin expansion.
