Analyst Note| Julie Utterback, CFA |
Narrow-moat PerkinElmer reported slightly better-than-expected third-quarter results in its non-COVID-19 operations, which allowed management to maintain its full-year outlook. The company was also able to maintain decent margins despite macroeconomic headwinds as it leveraged volume and pricing increases while also controlling costs. PerkinElmer remains on track to successfully execute the planned divestiture of its analytical, food, and enterprise service business to New Mountain Capital by the first quarter of 2023. We are maintaining our $162 fair value estimate and believe the shares are moderately undervalued.