BRKR Should I Buy

Jefferies analyst Tycho Peterson notes headlines surfaced last week around helium price shocks amid the escalating conflict in the Middle East, where 20% of the globe's helium supply is sourced, and argues that rising helium prices could create a selective tools headwind, with Bruker (BRKR) most exposed given that it is a critical operating input for customers running NMRs and some MRIs. Agilent (A) and Thermo Fisher (TMO) face more limited risk as their helium exposure is primarily relegated to gas chromatography workflows, the analyst argues. Separately, a draft policy from China's National Health Security Administration late last week proposed a national shift toward analyte-based, method-agnostic reimbursement, which could narrow the economic advantage of dry chemistry for QuidelOrtho (QDEL), the analyst tells investors in the same note on the life science tools group. Jefferies has Buy ratings on Bruker and QuidelOrtho and is Restricted on Agilent and Thermo Fisher.