Ryerson Paper Trading Club

Bio Rad Laboratories Inc (NYSE.BIO) – Buy

By: Sahil Duggal, Neil Jonatan,

Rottem Maor, Liam Hennessy

March 21, 2021

Trading Report #18

EQUITY

TRADING

REPORT

Executive Letter

Dear reader,

The purpose of our reports is to demonstrate our executives’ deep knowledge and understanding of investments, the financial industry,

financial indicators, risk management, etc.

All reports are approved, fact-checked and edited by Founding President Neil Jonatan and Co-V.P.s of Finance Rottem Maor and Liam

Hennessy.

Disclaimer: The analyses and conclusions of Ryerson Paper Trading Club (“RPTC") contained in this presentation are based on publicly

available information. RPTC recognizes that there may be confidential information in the possession of the companies discussed in the

presentation that could lead these companies to disagree with RPTC’s conclusions. This presentation and the information contained herein

is not a recommendation or solicitation to buy or sell any securities.

The analyses provided may include certain statements, estimates and projections prepared with respect to, among other things, the

historical and anticipated operating performance of the companies, access to capital markets and the values of assets and liabilities. Such

statements, estimates, and projections reflect various assumptions by RPTC concerning anticipated results that are inherently subject to

significant economic, competitive, and other uncertainties and contingencies and have been included solely for illustrative purposes. No

representations, express or implied, are made as to the accuracy or completeness of such statements, estimates or projections or with

respect to any other materials herein. Actual results may vary materially from the estimates and projected results contained herein.

The sole responsibility for the content of this publication lies with the authors. Its contents do not reflect the opinion of RPTC. RPTC assumes

no responsibility or liability for any error, inaccuracy, omission or comment contained in this publication or for any use that may be made

of such information by the reader.

Sincerely,

Neil Jonatan

Founding President

Rottem Maor

Co-V.P. of Finance

Liam Hennessy

Co-V.P. of Finance

Investment Overview

Key Financials Business Summary

Ticker NYSE: BIO

Bio-Rad Laboratories manufactures and supplies life science research, healthcare, analytical chemistry, and other markets with a range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components. The company has direct distribution channels in approximately 36 countries outside the United States through subsidiaries whose focus is sales, customer service, and product distribution.

Share Price $568.93 (USD) 52 Week Range $309.38 – 689.00 (USD) Market Capitalization $17.13B (USD) LTM P/E 4.50x Return on Equity 48.7% Gross Margin % 56.4%

52 Week Performance Quarterly Revenue ($millions)

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16

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Company Overview

Business Mix Broad Portfolio: Leading Technologies

Geographic Mix

21%

35%

44% APAC

EMEA

Americas

Worldwide

Presence

38%

13%12%

3%

23%

11%

Hospital Labs

Reference Labs

Transfusion Labs

Applied

Academic/Govt

Biopharma

Gene expression

Protein quantitation

Bioproduction

ddfPCR™

Single cell

Quality controls

Immunohematology

Infectious diseases

Diabetes monitoring

Autoimmune

Diversified

Customer Base

PEST Analysis

Political Economic

Social Technological

Bio-Rad Laboratories, Inc. is operating in Medical

Laboratories & Research in more than dozen countries and

expose itself to different types of political environment and

political system risks. The achieve success in such a dynamic

Medical Laboratories & Research industry across various

countries is to diversify the systematic risks of political

environment. Bio-Rad Laboratories, Inc. can closely analyze

legal framework for enforcement, pricing regulations,

industrial safety regulations, and importance of medical

laboratories & research in the country’s economy.

Macro environment factors such as – inflation rate,

savings rate, interest rate, foreign exchange rate and

economic cycle determine the aggregate demand and

aggregate investment in an economy. While

microenvironment factors such as competition norms

impact the competitive advantage of the firm. Bio-Rad

Laboratories, Inc. can use country’s economic factor such

as growth rate, inflation & industry’s economic indicators

such as Medical Laboratories & Research industry growth

rate, consumer spending to forecast the growth.

Society’s culture and way of doing things impact the culture

of an organization in an environment. Shared beliefs and

attitudes of the population play a great role in how

marketers at Bio-Rad Laboratories, Inc. will understand the

customers of a given market and how they design the

marketing message for Medical Laboratories & Research

industry consumers. Social factors that leadership of Bio-

Rad Laboratories need to analyze are gender roles, social

conventions, education standard & level, and environmental

concerns.

Technology is fast disrupting various industries across the

board. The medical industry is fast moving toward

automation led by several bio-tech firms, which has

started a medical revolution. A firm should not only do

technological analysis of the industry but also the speed

at which technology disrupts that industry. Slow speed

will give more time while fast speed of technological

disruption may give a firm little time to cope and be

profitable.

Technical Analysis

NYSE: BIO

Ascending Channel: An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows

characterize this price pattern. When the price hits the bottom of the channel, cover your existing short position and/or take a long position.

Bollinger Band: The stock was close to the lower band indicating it was oversold but recently it has been gaining strength approaching the moving

average. Future forecast involves the stock going above its moving average and increasing to the upside.

Upper Channel Line

Lower Trendline

Technical Analysis

NYSE: BIO

Relative Strength Index: The RSI is in relative oversold territory from the last price highs. Bio Rad has been relatively stable as it is consolidating

around the $560.00 range. This current price range is also a strong level of support for the company.

Elders Force Index: The force index is a technical indicator that measures the amount of power used to move the price of an asset. Large force

index readings are associated with very strong price moves and very high volume. Bio Rad stock is passing the force index median line indicating

a potential large movement in volume and price indicating a good buying opportunity.

Investment Valuation

Comparative Valuation

The comparative valuation provides us with price targets for the next twelve

months basing it on TEV/Forward Total Revenue. Our base case is very

conservative as the street consensus has a median upside of 32.6%. That

upside is what we have received in our optimistic case. Hands down this is a

buy as several analysts believe this stock is going to outperform, with only

one analyst saying it will underperform.

Recommendation Thesis Summary

As a student run investment club, RPTC’s purpose is to recommend investments in companies that are positioned to grow in value and sell those that have a negative outlook.

Our thorough analysis has led us to the conclusion that Bio-Rad Laboratories is going to increase in price in the medium and long term. As it is an essential business that will continue to operate and generate revenue in almost all cases even during a pandemic.

Conditional BUY at $560.00

Implied Return on Investment (Buy): 20.54% - 29.46%

Risk Management Strategy Target Visualization

Optimal Execution Price: $560.00

Stop Loss: $500.00

Targets:

• 1st – $675.00 (20.54% gain)

• 2nd – $725.00 (29.46% gain) Risk/Reward Ratio: 12.00%: 20.54% - 29.46% Portfolio Allocation: 10%

$500.00

$560.00

$675.00

$725.00

Citations (1) Yahoo Finance

https://finance.yahoo.com/quote/BIO/history?p=BIO (2) Capital IQ

https://www-capitaliq-com.ezproxy.lib.ryerson.ca/CIQDotNet/Comps/Comparables.aspx?compsId=-3000&companyId=255743&tempId=1&tab=4&statekey=429d77a66e65496bb6ebd19644845006

(3) CNN Business https://money.cnn.com/quote/forecast/forecast.html?symb=BIOINDIGO 9 DIGITAL