COVID testing drives Blair to upgrade Meridian for first time in 10 years - InvestingChannel

COVID testing drives Blair to upgrade Meridian for first time in 10 years

William Blair analyst Brian Weinstein upgraded Meridian Bioscience to Outperform from Market Perform for the first time in over 10 years covering the name. The global COVID-19 pandemic has created an opportunity for Meridian to significantly increase the revenue and exposure of its life science business, which will be a multiyear benefit to cash flow and profitability, Weinstein tells investors in a research note. This causes the investment thesis to move away from one focused on the turnaround of the diagnostics segment, which can play out a year or so from now, says the analyst. Weinstein recognizes the increase in demand for COVID-19 testing may be considered one time, but he “strongly” believes we will be testing for this virus “for many years in some form.” Meridian’s life science segment is working with over 35 molecular players and some of the biggest companies in serology, making the story “about this as opposed to clinical diagnostics,” contends the analyst.