PKI - Bank of America is cautious on life sciences companies ahead of earnings

As Danaher (DHR) is set to kick off the earnings season of the makers of Life Sciences & Diagnostic Tools on Thursday, Bank of America analysts led by Derik de Bruin issued cautious views on the subsector, citing macro and geopolitical headwinds. The earnings season for the group comes at a time the S&P 500 Life Science Tools Index is trailing the broader index, the analysts point out, attributing the underperformance to issues such as COVID-related lockdowns in China and Russia/Ukraine conflict. The Chinese restrictions are likely to impact companies with sizable revenue exposure to the specific region, such as Align Technology (ALGN), according to analysts. Meanwhile, firms like Agilent Technologies (A) and PerkinElmer (PKI), both of which have significant manufacturing exposure to China and Shanghai, in particular, could also face challenges, the analysts argue. Yet, they stopped short of updating the companies' models, citing the need for management feedback. However,

For further details see:

Bank of America is cautious on life sciences companies ahead of earnings