Life Technologies Corp. (LIFE) Holds Stable Cash Flows and Access to New Sequencing Technologies

May 7, 2013

Life Technologies Corp. (LIFE) is a solid player in the fast-growing genomic technology segment, with strong cash flows and access to new sequencing technologies while retaining its place in the broader market, says David Ferreiro, Executive Director and Senior Analyst at Oppenheimer & Co. Inc.

“One that we have liked a lot has been Life because of the really good, stable cash flows and obviously that stock has run a lot lately, because it’s subject to potential M&A. It announced that it was conducting a strategic review, which investors took as it was up for sale. Aside from the cash flows, we also liked the name because it had access to some of the faster growing submarkets like genomics, namely sequencing, while remaining a much broader play on tools market,” Ferreiro said.


Genomic technology names have garnered significant investor interest recently, given the excitement around new sequencing technologies and their potential applications, Ferreiro says.

“Genomic technologies, like the new sequencing technologies, namely next-generation sequencing, have recently really captured the imagination of investors. Aside from the fact that it’s been the fastest area of growth in the life science tools space, much faster than the broader market, but the potential application to clinical diagnostics and personalized medicine and personalized medicine strategies,” Ferreiro said.