In a recent investor's note,
Zacks Investment Research agrees that ForteBio's collection of analytical solutions complements Pall'sexisting microbiological monitoring platforms and notes that Pall's BioPharmaceuticals offering from its life sciences business will be boosted through the add-ons from ForteBio,thus better serving its customers.
Adding some words of caution though, Zacks notes that Pall derives a major portion of its revenue from outsidethe United States and points out that the company's operating results may be materially affected bychanges in foreign currency rates. Furthermore, Pall Corp. has a number oflongstanding cost reduction and gross margin improvement initiatives. "Unexpected delays or other factors could impact the company's ability torealize the anticipated savings while improving its financialperformance," Zacks notes, adding that "We currently maintain our 'Neutral' rating on Pall Corp. for thelong term, with a Zacks #2 Rank (short-term 'Buy' recommendation) over thenext one to three months."
News of the acquisition plans came shortly after Standard & Poor's Ratings Services indicated it mightupgrade Pall from its triple-B rating (two steps above junk territory) if the company continues to show continued good performance, citing solid credit metrics and goodoperating performance. Analyst Dan Picciotto told the Wall Street Journal that the filtration,separation, and purification industry has generally good prospects,with growth that he expected to exceed the rate of U.S. gross domestic product.
