Revvity (RVTY): Assessing Valuation Following Sanofi Alliance for Population-Scale Diabetes Diagnostics Expansion

Revvity (RVTY) has entered into a strategic alliance with Sanofi to develop and commercialize a new population-scale diagnostic assay for early detection of type 1 diabetes. This marks a meaningful expansion from its existing rare disease footprint.

See our latest analysis for Revvity.

Revvity’s share price has struggled recently, down 3.7% for the day and 21.2% year-to-date, with a one-year total shareholder return of -27.2%. While recent partnerships and product launches suggest growth ambitions are alive, investors remain cautious as momentum has yet to meaningfully reverse.

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With shares down sharply and the company trading at a discount to analyst price targets, the question now is whether Revvity offers real upside for new investors or if the market already reflects its future growth potential.

Most Popular Narrative: 23% Undervalued

With the most widely followed narrative assigning Revvity a fair value nearly $27 higher than its last close, optimism about future earnings growth stands in stark contrast to the company’s recent market struggles.

Ongoing shift in product mix toward higher-margin, software-enabled and consumables-driven offerings (e.g., SaaS Signals, reagents, new IDS i20 platform), along with structural cost actions, are expected to materially expand operating and net margins. In addition, 2026 is set to start at a higher 28% operating margin baseline.

Read the complete narrative.

Want to know why analysts believe profit margins could surge in just a few years? The calculation behind this fair value rests on bold forecasts and margin leaps. Uncover the financial assumptions and shifting mix that fuel this impressive price target. Even skeptics might be surprised by the underlying projections.

Result: Fair Value of $115.19 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing market softness in key regions and persistent regulatory challenges could delay any meaningful recovery and test the validity of optimistic forecasts.

Find out about the key risks to this Revvity narrative.

Another View: Risk of Overpaying Based on Ratios

Looking from a different angle, Revvity’s price-to-earnings ratio is currently 36.8x. This is higher than both the US Life Sciences industry average of 31.7x and the fair ratio of 23.5x. This means that, despite forecasts of rapid earnings growth, the stock is more expensive than peers and where the market could eventually re-rate it. Could this premium become a risk for investors if growth falls short of expectations?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Revvity Narrative

If you want to dig deeper or come to your own conclusions, you can put together a personalized view of Revvity’s prospects in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Revvity.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.