Bio-Techne Corporation (TECH): A Bull Case Theory

We came across a bullish thesis on Bio-Techne Corporation on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on TECH. Bio-Techne Corporation's share was trading at $55.31 as of July 23^rd. TECH’s trailing and forward P/E were 66.64 and 26.04 respectively according to Yahoo Finance.

Bio-Techne (TECH) is a leading life sciences reagents and instruments company with a diversified global presence, highly recurring revenues, and a robust financial position, yet its shares face pressure from concerns around academic funding. Founded in 1976 and publicly listed since 1985, TECH built its reputation on high-quality antibodies and proteins central to life sciences research.

Its model combines consumables and instruments, creating a razor/razor blade dynamic where reagents drive recurring demand. Approximately 80% of revenues now come from consumables, underpinned by minimal customer concentration due to a broad and diversified client base across research, pharmaceuticals, diagnostics, and bioprocessing markets.

The company operates through two synergistic segments: Protein Sciences and Diagnostics & Genomics. Since 2013, TECH has executed a strategy of deploying cash flows from its Protein Sciences business into higher-growth acquisitions that complement its portfolio and deepen customer penetration, strengthening its growth trajectory and market leadership.

This M&A-driven expansion has transformed TECH into a more durable, growth-oriented platform with consistent free cash flow generation and a healthy balance sheet, enabling reinvestment in innovation and bolt-on deals. While macro headwinds and questions around research funding have weighed on its valuation, the company’s core strengths—a resilient recurring revenue base, minimal concentration risk, and expanding portfolio—position it to benefit as funding normalizes and demand for advanced life sciences tools continues to rise.

With solid fundamentals, TECH remains a high-quality player capable of delivering sustainable growth, supported by strategic acquisitions and operational discipline, offering an attractive opportunity once near-term concerns abate.

Previously we covered a bullish thesis on Bio-Techne Corporation (TECH) by scuttleblurb in May 2025, which highlighted its diversified recombinant proteins business, CGT expansion, and recovery from cyclical headwinds. The stock has appreciated about 15% since our coverage as organic growth rebounded. The thesis remains valid given durable strengths. Stock Analysis Compilation shares a similar view but emphasizes recurring revenues and M&A-driven growth.

Bio-Techne Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held TECH at the end of the first quarter which was 24 in the previous quarter. While we acknowledge the potential of TECH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.