Ariel Mid Cap Value Composite on Bio-Rad Laboratories, Inc.
Thesis
Ariel believes Bio-Rad's operational restructuring and capital allocation can unlock long-term earnings growth. Organic sales and margin performance exceeded expectations despite weakness in academic research and China. A broad restructuring program is designed to streamline operations and raise profitability. Buybacks and talks with activist Elliott Investment Management reinforce attention on operational execution and value creation.
“operational improvements, cost actions and strategic investments support compelling long-term earnings growth.”
Key risks
- Weak academic research spending
- Continuing softness in China
- Execution uncertainty around restructuring and margin expansion