We came across a bullish thesis on Bruker Corporation (BRKR) on Value Investing Subreddit Page by FckYouMoney. In this article, we will summarize the bulls’ thesis on BRKR. Bruker Corporation (BRKR)’s share was trading at $40.73 as of May 5th. BRKR’s trailing and forward P/E were 53.59 and 16.21 respectively according to Yahoo Finance.
A technician in a lab inspecting an ELISA test kit for use in biopharmaceutical diagnostics.
Bruker Corp., a leader in advanced scientific instruments for life sciences and materials research, has seen its stock drop over 50% since late 2024, despite growing revenue by 13.6% and maintaining strong free cash flow. The stock’s decline is largely due to short-term margin pressure, weaker demand in China and biopharma sectors, and costs associated with a strategic reorganization aimed at scaling operations and driving long-term efficiencies. While the reorganization and acquisitions temporarily hurt margins, they position Bruker for improved profitability in the future. The market, however, appears to be mispricing this short-term transition as a permanent structural decline, a view shared by insiders and notable investors like Michael Burry, who have recently initiated positions in the company.
With the stock trading at attractive multiples compared to its historical performance and peers, Bruker appears undervalued. The company’s core markets, including proteomics, continue to expand, providing a solid foundation for growth. With forward EPS around $2.70 and an average P/E ratio of 30, a re-rating toward $80 is highly likely if margins improve and sentiment shifts, offering a compelling investment opportunity at the current price levels.
Bruker Corporation (BRKR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held BRKR at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of BRKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BRKR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
