Analyst Note| Aaron Degagne |
Narrow-moat Bio-Techne ended the fiscal year with strong growth across the board paired with margin gains that outpaced our forecasts, and we are increasing our fair value estimate by 6% to $339 per share. Bio-Techne also announced a leadership transition, with CEO Chuck Kummeth stepping down by mid-year 2024 (end of that fiscal year). We do not expect this development to significantly affect the firm's long-term strategy given that Kummeth will remain on the board and help choose his successor. Considering the company has been performing well, there would be little reason to significantly change strategic direction.