Will a New Sequencing Collaboration Redefine Twist Bioscience's (TWST) Innovation and Market Expansion Narrative?

• In recent days, Stephens initiated coverage on Twist Bioscience, highlighting the company's proprietary silicon chip technology and operational strengths, while Element Biosciences and Twist Bioscience announced a new collaboration to advance sequencing solutions.
• This partnership aims to improve sample processing speed for next-generation sequencing, signaling Twist Bioscience's ongoing commitment to product innovation and market expansion.
• We'll examine how the new sequencing collaboration could influence Twist Bioscience's broader growth narrative and long-term outlook.

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Twist Bioscience Investment Narrative Recap

Shareholders in Twist Bioscience have to believe in the company's long-term capacity to expand in the competitive genomics and synthetic biology fields, betting on ongoing product innovation and customer base growth to offset current unprofitability. While the latest Element Biosciences collaboration showcases Twist’s commitment to improving sequencing workflows and could encourage broader adoption among research customers, its immediate impact on the major short-term catalysts, especially achieving adjusted EBITDA breakeven, remains to be seen, with customer concentration staying a key risk factor for revenue stability.

Of the recent developments, Twist Bioscience’s launch of the Trinity Freestyle Fast Hybridization Workflow for Element’s AVITI platform directly advances its sequencing capabilities. This step aligns with the company’s ongoing strategy to enhance product differentiation and gain market share, factors that will be critical as Twist aims to reduce its dependency on a small pool of large NGS customers and diversify recurring revenue streams.

Yet, despite these advances, investors should remain mindful of the risk posed if a major customer reduces orders...

Read the full narrative on Twist Bioscience (it's free!)

Twist Bioscience's outlook suggests revenues of $575.2 million and earnings of $92.4 million by 2028. This is based on an assumed annual revenue growth rate of 16.7% and an earnings increase of $177.6 million from current earnings of -$85.2 million.

Uncover how Twist Bioscience's forecasts yield a $39.43 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members' fair value estimates for Twist Bioscience range widely from US$35.47 to US$50, with three distinct perspectives included. As you explore these varied opinions, remember future earnings remain vulnerable to volatile revenue if large NGS customer relationships shift.

Explore 3 other fair value estimates on Twist Bioscience - why the stock might be worth as much as 59% more than the current price!

Build Your Own Twist Bioscience Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Twist Bioscience research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Twist Bioscience's overall financial health at a glance.

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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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