Bio-Techne (TECH) is positioned for potential upside from recent acquisitions and divestitures as the company works through end-market weakness, RBC Capital Markets said.

The firm said the stock's 25% year-to-date decline was unwarranted and that Bio-Techne could return to mid-single-digit revenue growth in the next 12 months.

The decision to sell Exosome Dx improves confidence in the company's strategy while eliminating management distractions and a margin drag, according to the note Tuesday.

The firm also called the pending Wilson Wolf acquisition underappreciated, citing a roughly $100 million revenue business growing more than 20% annually, which could enhance revenue and margins on a pro forma basis.

RBC upgraded Bio-Techne to outperform and raised its price target to $73 from $61.

Price: 53.38, Change: -0.04, Percent Change: -0.07