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Analysts Upgrade BioLife After Stirling Acquisition, Revenue Jump

Analysts upgrade BioLife after the company's Stirling acquisition and fourth-quarter revenue jump.

Shares of BioLife Solutions  (BLFS) - Get BioLife Solutions, Inc. Report were rising Tuesday after the maker of biopreservation tools for cells and tissues reached an all-stock deal to acquire Global Cooling and posted a fourth-quarter revenue increase.

Benchmark analysts upgraded the stock to buy from hold with a price target of $54. 

"BioLife released very solid earnings result," the analysts said in commentary cited by Bloomberg.

Shares of BioLife rose 4.8% to $40.42 on Tuesday. The stock had risen as much as 25% in premarket trading.

The deal for Global Cooling, which does business as Stirling Ultracold, should boost adjusted earnings per share in 2022 and clock revenue in excess of $100 million this year, the company said.

With this deal we continue to "consolidate the bioproduction tools and services space by adding novel and disruptive technologies to our portfolio," said Mike Rice, chief executive officer, in a statement.

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Analysts at Keybanc said the Stirling deal expands BioLife’s presence into the larger biologic market with ultra-low temperature storage technology for vaccines and traditional biologics. 

Keybanc raised its price target on the stock to $50 from $40.

Analysts at Cowen said the Stirling acquisition adds a complementary asset that rounds out BioLife’s Freezer franchise.

The Bothell, Wash., company posted a fourth-quarter loss of 6 cents a share compared with earnings of 3 cents a share in the year-ago period.

Total revenue for the quarter ended Dec. 31 rose 78% to $14.7 million from $8.3 million in the same period last year.

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BioLife's media business grew consistently, increasing 32% from 2019, and contributed to very strong overall revenue growth, said Roderick de Greef, chief financial officer and chief operating officer.

The company also gained more than 200 new direct customers across its bioproduction tools and services portfolio and 3,500 new indirect media customers sourced its products from distributors.