AVTR - UBS bullish on Q1 growth for life sciences & diagnostic tools; picks IQVIA Catalent and Avantor as top ideas

Solid biopharma demand, rising diagnostic trends, and the economic recovery will support a ‘healthy’ Q1 revenue growth argues UBS analyst Dan Brennan and the team in a Q1 2021 preview written on the sector of life sciences & diagnostic tools.The firm picks IQVIA Holdings ([[IQV]] +1.0%), Catalent ([[CTLT]] +1.5%) and Avantor ([[AVTR]] +2.2%) as top ideas into 1Q results and includes companies such as Danaher ([[DHR]] +1.3%), Agilent Technologies ([[A]] +0.8%), ICON ([[ICLR]] +1.7%) and Thermo Fisher ([[TMO]] -0.5%) among many of its buys with attractive stories.Robust biopharma demand notably on bioproduction is likely to benefit Danaher, Agilent, Avantor and Thermo Fisher as R&D also remains solid, Brennan and the team argue.Despite the flat QoQ guidance given by many companies, the analysts predict an upside opportunity in COVID PCR test volumes citing among other things the favorable pre-announcements from the likes of PerkinElmer ([[PKI]] -0.4%) and Danaher.In January, Wells Fargo projected the COVID-19 testing-related tailwinds

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UBS bullish on Q1 growth for life sciences & diagnostic tools; picks IQVIA, Catalent and Avantor as top ideas