2Q Preview: Are Tools really ‘back‘, or are we in for another false-start?

Research evidence excerpt

2Q Preview: Are Tools really ‘back‘, or are we in for another false-start?

ld drive increase in reported

sales and Adj EPS outlook).

We are also encouraged by management’s reaffirmation of its underlying FY26

framework (excluding MASI) and continue to believe investor attention will remain on

capital allocation following the MASI close, including potential M&A and share buybacks.

We maintain our Buy rating & $270 PO.

Avantor (AVTR): Maintain Estimates and Neutral; Raise PO to $12

While execution under the Revival program continues to progress, we believe the key

question remains whether recent operational improvements are translating into a

durable recovery. Improving Bioscience & Medtech Products (BMP) order trends, VWR

stabilization, and continued margin execution support the long-term opportunity,

although clearer evidence of sustained organic growth is still needed. We maintain our

estimates, but raise our PO to $12 (was $10) now based on 11x FY27 EBITDA (was

~10x), reflecting peer group expansion. We maintain our Neutral rating.

Bruker (BRKR): Maintain estimates and Buy rating; Raise PO to $70

or 2Q, we expect focus to remain on semiconductor orders, margin progression, and

management’s confidence in the FY26 outlook. Management has highlighted continued

strength in semiconductor orders, supported by its exposure to advanced packaging and

QA/QC applications, while maintaining a constructive FY26 outlook. However, we believe

the key debate will remain the durability of semiconductor demand, including any

potential further acceleration in orders, as well as timing of order conversion to revenue.

For the core business overall, continued order strength, and margin progression, are key

(esp as BRKR has particularly easy 2Q25 comps). For 2Q, we're modeling 4% organic