Analysts have revised Twist Bioscience’s price target downward from $40.00 to $39.43, citing stable end markets and expectations of improving sentiment as the primary rationale for the modest adjustment.
Analyst Commentary
Recent analyst updates on Twist Bioscience reflect a nuanced perspective on the company’s outlook, highlighting both potential opportunities and ongoing challenges that could influence near-term valuation and long-term growth prospects.
Bullish Takeaways
- Bullish analysts expect the company’s end markets to remain stable, supporting revenue consistency and reducing downside risk for the next several quarters.
- There is an overall sentiment that investment interest has “bottomed” and could improve as share valuations have normalized. This may attract new investors and support stock performance.
- Improving industry momentum is anticipated, as growth trends across the life science and diagnostics segments suggest that Twist Bioscience could benefit from broader sector strength.
- Maintaining an Overweight or positive rating, even with a lowered price target, signals analysts’ conviction in the company’s execution and long-term outlook.
Bearish Takeaways
- The adjustment of the price target downward indicates tempered expectations and shows that analysts see limited near-term upside for the stock.
- Valuation concerns are present, with recent declines in share price potentially reflecting over-optimism in prior forecasts and the need for further evidence of sustained growth.
- Analysts remain cautious about the pace of improvements in key metrics. This suggests that execution risks and market uncertainties could weigh on short-term performance.
What's in the News
- Twist Bioscience and Element Biosciences launched the Trinity Freestyle Fast Hybridization workflow for the AVITI sequencing platform, offering a rapid, scalable, and flexible solution that enables sample-to-sequencer processing in as little as five hours. The agreement gives Twist exclusive access for use with its library prep kits, ensuring broad compatibility and consistent sequencing performance. (Key Developments)
- Twist Bioscience introduced the Oncology DNA Comprehensive Genomic Profiling (CGP) Panel, a research-use-only tool designed to identify genomic alterations across a broad set of tumors. This tool supports both targeted therapy development and oncology research. The panel covers 562 genes and includes updated biomarkers for all major tumor types. (Key Developments)
- The company provided fourth quarter and fiscal year 2025 guidance, projecting Q4 revenue of $96 to $98 million, a 14.5% increase year-over-year. The fiscal 2025 revenue guidance was narrowed to $374 to $376 million, reflecting anticipated annual growth of 19.7% at the midpoint. (Key Developments)
- A collaboration was announced with Synthetic Design Lab, leveraging Twist’s proprietary technology to support specific research activities for next-generation therapeutics. (Key Developments)
- The launch of a novel humanized transgenic (HuTg) mouse model aims to enhance antibody discovery services. This model enables Twist’s customers to expedite the identification of human antibodies and streamline the clinic translation process. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target: Adjusted slightly downward from $40.00 to $39.43.
- Discount Rate: Increased marginally from 6.84% to 6.91%.
- Revenue Growth: The projected annual growth rate has risen slightly from 15.66% to 15.75%.
- Net Profit Margin: Improved from 16.11% to 16.38%.
- Future P/E: Expected to decrease from 34.05x to 32.97x, reflecting a modestly lower valuation multiple.
Disclaimer
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