Analysts have raised Ginkgo Bioworks Holdings’ price target to $11.33 on the back of a strong Q2 topline beat and accelerated cost reductions, though concerns persist over EBITDA breakeven achievability and medium-term growth visibility.
Analyst Commentary
- Bullish analysts highlight a significant Q2 topline beat driven by faster-than-expected cost reductions.
- Despite strong recent results, concerns remain regarding the company's ability to achieve adjusted EBITDA breakeven by the end of 2026.
- The management reiterated its commitment to reaching EBITDA breakeven, identifying it as the top strategic goal.
- Analysts express caution due to limited visibility into 2026 growth prospects, making EBITDA positivity a challenging and uncertain target.
- Bearish analysts maintain a cautious stance given ongoing uncertainties in the business's medium-term growth outlook.
What's in the News
- Ginkgo Bioworks launched a strategic partnership with Inductive Bio and Tangible Scientific to broaden access to AI-driven, lab-in-the-loop drug discovery, offering integrated automated workflows and enhanced ADMET predictive modeling.
- The company reaffirmed its 2025 revenue guidance at $167 million to $187 million.
- Ginkgo Automation secured a $4.66 million contract to install an automated anaerobic phenotyping platform at EMSL, Pacific Northwest National Laboratory, supporting autonomous science workflows and advancing biotechnology research.
- Ginkgo Bioworks introduced high-throughput, low-cost ADME profiling at Ginkgo Datapoints, promising price matching with international vendors and fully US-based work, with AI-ready datasets for accelerated drug development.
- Ginkgo Bioworks was added to numerous Russell indexes, including the 2000, 2500, 3000, Microcap, and Small Cap Completeness series, in both growth and value categories.
Valuation Changes
Summary of Valuation Changes for Ginkgo Bioworks Holdings
- The Consensus Analyst Price Target has risen from $10.33 to $11.33.
- The Future P/E for Ginkgo Bioworks Holdings has significantly risen from 35.87x to 42.54x.
- The Consensus Revenue Growth forecasts for Ginkgo Bioworks Holdings has significantly fallen from -9.1% per annum to -10.2% per annum.
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