One other Day, One other Purchase Ranking for Bionano Inventory
Two months in the past, simply after Bionano Genomics (BNGO) had reported a little bit of an earnings miss, Maxim analyst Jason McCarthy was sufficiently discouraged concerning the firm’s prospects that he reduce his worth goal on the San Diego-based cytogenetics specialist’s inventory by $4 to $10.
Two months later, McCarthy is holding agency on that revised prediction, although, and reiterating his “purchase” advice on the inventory as effectively in a word revealed yesterday — and why not? Within the two months since he final doubled down on the inventory, Bionano shares are up 20%. As long as the purchase thesis is working, there would not appear any good motive not suggest Bionano once more.
In yesterday’s newest replace, McCarthy cites back-to-back peer-reviewed publications within the American Journal of Human Genetics, reviewing findings from the genomes of sufferers with inherited genetic illness and of these of hematological malignancies, that collectively “define the utility of optical genome mapping (OGM) as a superior different to conventional strategies for structural variant (SV) evaluation.”
Curiously, Bionano’s personal press launch describing the publications would not point out this level, however in McCarthy’s report, he highlights the truth that each papers that had been revealed utilized information generated with using Bionano’s Saphyr genomic optical mapping programs. Because the analyst factors out, every of the Radboud College Medical Heart, Cochin Hospital in Paris, Hospices Civils in Lyon, and the College Hospital of Clermont-Ferrand, whose scientists and clinicians contributed to the revealed research, are “notable Saphyr customers.” And these publications additional argue that OGM (i.e. Bionano’s Saphyr) “has the potential to turn into a major evaluation for many molecular cytogenetics purposes and offers a complement to current sequencing-based strategies for a extra complete view of genome variation.”
Why? In distinction to conventional cytogenetic strategies, which labor below the constraints of “low decision and incapacity to detect balanced SVs or point out the genomic localization and orientation of duplicated segments or insertions,” Bionano’s Saphyr system, says McCarthy, “offers a cheap and easy-to-use different with excessive decision for complete detection of chromosomal aberrations and structural variants.” And now, McCarthy says we’re seeing elevated “consciousness” of this “on each the analysis aspect and the investor aspect.”
End result: “The items are coming collectively for Bionano to succeed in a steeper progress trajectory.”
So what does all of this imply for Bionano? Curiously, it would not appear to alter the analyst’s purchase thesis in any respect. You see, regardless of promising a “steeper progress trajectory,” McCarthy’s newest estimates for revenues and progress charges are in reality unchanged from two months in the past. Then as at the moment, the analyst forecasts that revenues will roughly double over 2020 numbers to $15.5 million this 12 months, then develop an extra 73% by means of 2022. Bills will proceed to outweigh revenues, nevertheless, holding Bionano unprofitable by means of not less than 2022 — and doubtless fairly a bit longer than that.
Educational papers and McCarthy’s optimism however, the consensus on Wall Avenue stays: Bionano traders will in all probability have to attend till not less than 2025 earlier than they see their first revenue.
All in all, there’s common settlement on Wall Avenue that BNGO is a high quality funding, and the analyst consensus ranking reveals that: it’s a unanimous Robust Purchase, primarily based on 4 current critiques. The shares are priced at $6.78, and their common goal is $11.50, implying ~69% upside potential for the following 12 months. (See BNGO inventory evaluation on TipRanks)
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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is vitally vital to do your personal evaluation earlier than making any funding.