Positive Outlook for Alpha Teknova: Consistent Revenue Growth and Strategic Expense Management Drive Buy Rating
William Blair analyst Matt Larew has reiterated a Buy rating on Alpha Teknova (TKNO) stock, citing consistent revenue growth and effective expense management. The company reported a 9% revenue increase for the fifth consecutive quarter, while maintaining operating expenses below $8 million for six quarters. Positive trends in biotech funding and the pharmaceutical sector enhance Teknova's outlook, aiming for adjusted EBITDA breakeven by 2026. TD Cowen also supports a Buy rating with a $7.00 price target.
William Blair analyst Matt Larew has reiterated their bullish stance on TKNO stock, giving a Buy rating yesterday.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Matt Larew has given his Buy rating due to a combination of factors including Alpha Teknova’s consistent revenue growth and strategic management of expenses. The company has demonstrated a fifth consecutive quarter of positive revenue growth, surpassing expectations with a 9% increase, which slightly exceeded the target. Despite some variability in gross margins, Teknova has maintained operating expenses at $8 million or less for six consecutive quarters, showing effective cost management.
Additionally, improvements in biotech funding and the broader pharmaceutical environment suggest a favorable outlook for Teknova, particularly as it aims for adjusted EBITDA breakeven by 2026. The company’s shares are trading at 5.5 times the 2026 sales, which aligns with its peers, supporting the Outperform rating. The reiterated guidance for 2025, with expected revenue growth in Lab Essentials and a manageable decline in Clinical Solutions, further solidifies the positive assessment of Teknova’s future prospects.
Larew covers the Healthcare sector, focusing on stocks such as Thermo Fisher, AptarGroup, and MaxCyte. According to TipRanks, Larew has an average return of -0.9% and a 47.95% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $7.00 price target.
