12:49 PM EDT, 03/28/2024 (MT Newswires) -- Bio-Techne ( TECH ) stands to benefit more from a biotech funding recovery than its peers in the tools sector due to its significant exposure to early-stage biotech, UBS said in a note Thursday.

The company is seeing stabilization and improved funding activity in the biotech sector with Bio-Techne ( TECH ) expected to outpace market growth over the next five years, according to the note.

The firm said Bio-Techne's ( TECH ) recovery will depend on a return to growth in key areas like core proteins and antibodies, however, investors are interested in other verticals including protein analysis, spatial biology, and cell and gene therapy.

Management is optimistic about focusing on liquid biopsy, particularly exosomes, for detecting prostate cancer, and in an out-licensing model that can be carried out cost-effectively compared to developing more clinical lab products, UBS added.

The firm reiterated its buy rating on Bio-Techne's ( TECH ) stock and kept the price target at $80.

The company shares were up 1.2% in recent trading.

Price: 70.23, Change: +0.81, Percent Change: +1.17