Twist Bioscience (TWST): Assessing Valuation After New Synthetic Design Lab Partnership and Industry Conference Moves

If you have been watching Twist Bioscience (TWST) lately, you probably noticed a flurry of activity. The company just announced a new partnership with Synthetic Design Lab, tapping into its proprietary platform for targeted research work. In addition, Twist is lining up presentations at two significant healthcare conferences this month. For investors, these kinds of moves can open new growth channels or simply draw more eyes to the stock, which usually means shifting sentiment, whether that is optimism for a turnaround or skepticism about what comes next.

These announcements come after a year that has been anything but smooth for Twist Bioscience’s share price. The stock is down around 44% so far this year and has declined nearly 46% over the past twelve months, momentum that is hard to ignore even as fresh partnerships and high-profile industry appearances suggest the company is actively working to change the narrative. While the long-term track record still includes some challenging stretches, it is clear that the market is weighing both the setbacks and the potential for a rebound as Twist ramps up its visibility and new collaborations.

So, after this year’s tumble and the latest efforts to spark interest, is Twist Bioscience an undervalued opportunity, or is the market already factoring in any future growth?

Most Popular Narrative: 36.7% Undervalued

The prevailing narrative argues that Twist Bioscience is trading significantly below its estimated fair value, with fresher product launches and big-picture industry tailwinds shaping a bullish outlook.

Continuous product innovation, including new gene fragment offerings and anticipated upcoming product launches, reflects strategic reinvestment into R&D and manufacturing infrastructure. This supports scalability and improved gross margins over the medium to long term. Significant improvements in gross margin (now above 50%) through volume leverage, process improvements, and increased vertical integration signal ongoing margin expansion and a clear near-term path toward adjusted EBITDA breakeven, indicating robust future earnings potential.

Curious why analysts think Twist is so deeply undervalued? The secret sauce lies in the ambitious earnings growth, bold margin turnaround, and competitive multiples belying today’s price. What is fueling these projections, and what would have to happen for Wall Street’s targets to lock in? Get the full scoop in the deep-dive narrative.

Result: Fair Value of $40.0 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent losses and heavy reliance on a handful of large NGS customers could hamper Twist Bioscience’s growth and weigh on its turnaround story.

Find out about the key risks to this Twist Bioscience narrative.

Another View: What About Intrinsic Value?

While some investors focus on industry ratios, the SWS DCF model offers a broader look and suggests that Twist Bioscience’s current price may not reflect its underlying value. Could this fundamental perspective change the narrative?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Twist Bioscience for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Twist Bioscience Narrative

If you have your own perspective or want to dig into the numbers yourself, you can shape your own analysis and reach your own conclusions. All it takes is a few minutes to get started. Do it your way

A great starting point for your Twist Bioscience research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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