PKI - COVID-19 Creates A Windfall For PerkinElmer And Some Of The Benefits May Linger
- COVID-19 has driven a sharp upturn in demand for PerkinElmer's ImmunoDiagnostic and Applied Genomics products, including RT-PCR kits, automated systems, and reagents.
- COVID-19 is likely to have a noticeable impact on birth rates, hurting the newborn screening business in 2021-2023.
- Lab demand for PCR kits should remain strong a while longer, and I believe PerkinElmer has won some new long-term business from this crisis.
- With PerkinElmer likely to hold at least a piece of the windfall, I've boosted my revenue and FCF growth expectations, but it's not enough to drive an attractive fair value.
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COVID-19 Creates A Windfall For PerkinElmer, And Some Of The Benefits May Linger