Bio-Rad Labs aims for 20% operating margins, driven by cost cuts and AI efficiencies, keeping Buy rating.

Bio-Rad Laboratories remains a Buy after recent disclosures at the Wells Fargo Healthcare conference. Management targets long-term operating margins of 20%, with intermediate goals in the mid-teens, exceeding market expectations. Key drivers include cost rationalization, AI-driven efficiencies, and a shift toward higher-margin consumables revenue. Activist engagement and improved R&D leverage continue to support the stock's potential.