Bio-Rad's Sales and Margin Fall on Lower COVID-19 Contribution; Maintain $455 FVE

Narrow-moat Bio-Rad faced significant headwinds in the fourth quarter from lower COVID-19-related sales, which led to a year-over-year 780-basis-point decline in operating margin. That development is offset in our model by a higher valuation contribution from Sartorius and our expectation that the U.S. corporate tax rate will remain at 21%. Our $455 fair value estimate is unchanged.