Update shared on04 Oct 2025
Fair value Decreased 5.08%Analysts have lowered their price target for Twist Bioscience from $42.14 to $40.00. They cite stable end markets and a cautiously optimistic outlook based on current valuations and improved profit margin expectations.
Analyst Commentary
Recent analyst coverage of Twist Bioscience highlights both optimism and caution surrounding the company’s near-term prospects and valuation.
Bullish Takeaways
- Bullish analysts assess end markets as stable, supporting a favorable business environment for Twist Bioscience moving forward.
- Improved expectations for profit margins have positioned the company for potential financial upside as operations become more efficient.
- Current share valuations are considered attractive. Some believe sentiment may have reached a bottom, presenting a potential entry opportunity for investors.
- Analysts anticipate possible improvements in market conditions because headwinds appear to be moderating within the life science tools sector.
Bearish Takeaways
- Some cautious analysts highlight that the price target reduction reflects tempered growth expectations for the near term.
- Despite stable markets, ongoing uncertainty regarding demand trends may limit upside potential in the medium term.
- Lowered price targets suggest a more conservative stance toward valuation. Expectations point to only gradual improvement in operational execution.
What's in the News
- Twist Bioscience announced a collaboration with Synthetic Design Lab to conduct specific research activities using Twist's proprietary tools and platform (Client Announcements).
- The company launched the Twist Oncology DNA Comprehensive Genomic Profiling (CGP) Panel, a research-use-only product designed to identify genomic alterations across a broad set of tumors and support oncology research (Product-Related Announcements).
- Twist Bioscience provided earnings guidance for the fourth quarter of 2025, expecting total revenue between $96 million and $98 million. The company also narrowed its fiscal 2025 revenue forecast to a range of $374 million to $376 million, indicating nearly 20% year-over-year growth at the midpoint (Corporate Guidance: New/Confirmed).
- The company introduced a humanized transgenic (HuTg) mouse model to accelerate lead discovery and optimize monoclonal antibody development, expanding its antibody discovery services (Product-Related Announcements).
- Twist Bioscience accelerated Express turnaround time for all Gene Fragments, offering processing in as little as two business days and expanding standard offerings for researchers (Product-Related Announcements).
Valuation Changes
- Consensus Analyst Price Target: Decreased from $42.14 to $40.00, reflecting a modest reduction in perceived fair value.
- Discount Rate: Increased slightly from 6.78% to 6.84%, indicating a minimal rise in the risk profile applied to future cash flows.
- Revenue Growth: Revised downward from 16.69% to 15.66%, pointing to slightly lower expectations for top-line expansion.
- Net Profit Margin: Improved from 14.17% to 16.11%, which marks a notable increase in anticipated profitability.
- Future P/E: Lowered from 39.64x to 34.05x. This signals a reduced valuation multiple assigned to expected future earnings.
Disclaimer
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