AZTA Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Azenta Inc (AZTA) is not a strong buy for a beginner, long-term investor at this moment. The stock has experienced a significant decline in regular market trading (-7.65%), and technical indicators suggest a bearish trend. While there are some positive long-term growth prospects, the company's recent financial performance and analyst sentiment indicate challenges in the near term. It would be prudent to wait for clearer signs of recovery or stabilization before considering an entry.
The MACD histogram is negative (-1.068) and contracting, indicating bearish momentum. RSI is at 22.353, suggesting the stock is oversold but not providing a clear reversal signal. The stock is trading near its key support level (S1: 27.934), with resistance levels far above the current price (R1: 37.757). Moving averages are converging, indicating no strong trend direction.
Analysts from Evercore ISI and Needham maintain positive long-term outlooks, citing fiscal year plans and potential margin improvements. The stock has a chance for recovery in the second half of the year, as noted by TD Cowen.
The stock is down over 20% post-earnings due to lower gross margins and an earnings miss. Gross margin dropped significantly (-7.93% YoY). Analyst sentiment has been mixed, with some downgrades and reduced price targets. No recent news or significant insider/hedge fund activity to drive positive sentiment.
In Q1 2026, revenue grew slightly by 0.77% YoY to $148.6M, but the company remains unprofitable with a net income of -$15.43M (up 15.68% YoY). EPS improved to -0.34 (up 17.24% YoY), but gross margin dropped to 42.86% (-7.93% YoY), reflecting operational challenges.
Analyst sentiment is mixed. Evercore ISI maintains an Outperform rating with a reduced price target of $45 (from $50), while TD Cowen downgraded the price target to $30 (from $39) and maintains a Hold rating. Analysts highlight the importance of North America recovery in the second half of the year and margin improvements for future growth.
