Bio-Rad Laboratories (BIO) released its third-quarter financial results, posting a net loss compared to a sizeable profit this time last year. The company also completed a major share repurchase initiative during the quarter, adding another dimension for investors to consider.

Despite the challenging quarterly results and the latest share buyback, Bio-Rad Laboratories’ share price has shown a bit of a rebound recently, with an 11.9% share price return over the past 90 days. However, momentum remains subdued over the long term, as the company’s 1-year total shareholder return lags at -16.0%. The 5-year figure stands at -48.5%, suggesting that investors remain cautious while waiting for clearer signs of a turnaround.

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The recent swing in financials and a completed share repurchase raise an important question: Is Bio-Rad Laboratories currently undervalued after its declines, or is the market already factoring in its future growth prospects and challenges?

Most Popular Narrative: 5.1% Undervalued

Bio-Rad Laboratories’ most closely followed narrative estimates a fair value of $324, which is just over 5% above the recent close of $307.38. This sets the stage for a debate about whether future growth and new partnerships are enough to push the shares higher.

Recent launch and expansion of the QX Continuum and QX700 Series ddPCR platforms, alongside the acquisition of Stilla Technologies, positions Bio-Rad to accelerate its share capture as demand grows for advanced molecular diagnostics and precision medicine tools. This is expected to drive ddPCR revenue growth and improve margins through higher consumable pull-through and broader assay adoption.

Curious what’s behind this upward revision? There are bold assumptions about margin expansion and how new technologies could fuel long-term profitability. The full narrative unveils the numbers that could change how you see this valuation.

Result: Fair Value of $324 (UNDERVALUED)

However, persistent weakness in instrument demand and ongoing margin pressures could quickly challenge the optimism that is reflected in these valuation assumptions.

Build Your Own Bio-Rad Laboratories Narrative

Keep in mind, if you have a different perspective or want to dive into the numbers yourself, you can build your own narrative in just a few minutes: Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Bio-Rad Laboratories.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.