Revvity's (RVTY) strong portfolio faces slowing growth and rising competition, raising questions about its ability to achieve its long-term growth outlook, RBC Capital Markets said in a note Tuesday.

The company has built a strong portfolio across diagnostics and life sciences through years of acquisitions and divestments. However, growth at two of Revvity's key businesses, Euroimmun and BioLegend, has recently slowed, the analyst said.

Euroimmun, which accounts for about 27% of sales, has slowed to mid- to high-single-digit growth. US sales grew more than 20% in Q2, but it is unclear if that pace will continue, and competition is expected to increase, the analyst added.

The investment firm said Revvity's reagents business, which makes up about 26% of sales and is anchored by BioLegend, is growing at low-single-digit rates. It is also lagging the recovery in life science instrument demand and facing renewed competition.

Overall, the company's long-term organic growth outlook of 6% to 8% faces structural challenges, according to the note.

RBC initiated Revvity with a $135 price target and a sector perform rating.

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