On Tuesday, Baird reaffirmed its favorable stance on Twist Bioscience (NASDAQ:TWST) stock, maintaining an Outperform rating with a $46.00 price target.
The firm's analysis has been tracking the pricing premiums for Twist Bioscience’s Express Genes service, observing an increase in the average premium charged to academic institutions to about 33% for the month to date, up from approximately 31% in August. The premium for industry clients has remained stable at around 68%, consistent with the previous month.
The assessment by Baird suggests that the sustained high premiums could indicate strong demand for the company's synthetic genes offering. Although the firm expressed caution in directly linking these premiums to overall revenue or gross margin percentage performance for Twist Bioscience, the data could be interpreted as a positive sign for the company’s market position.
The tracking of Express Genes pricing premiums is part of Baird's ongoing market analysis. The firm monitors these premiums daily, providing a snapshot of the company's pricing strategy and its reception in the market.
Recent data indicates that Twist Bioscience could command higher prices from academic institutions in September than in August while maintaining its pricing power with industry clients.
Baird's commentary highlights a cautious approach to drawing definitive conclusions from this pricing data alone. However, the firm suggests that the elevated pricing premiums for Twist Bioscience’s Express Genes could indicate robust demand for the company's products.
Investors or interested parties seeking more detailed information about the pricing data have been invited to contact a Baird representative for any dataset requests. This invitation suggests that Baird is open to providing further insights into the market dynamics surrounding Twist Bioscience's offerings.
In other recent news, Twist Bioscience Corporation has reported a robust 28% year-over-year growth in revenue for the fiscal third quarter of 2024, totaling $81.5 million.
The company's gross margin also improved significantly to 43.3%, with a target to exceed 50% by the end of fiscal 2025. Furthermore, Twist Bioscience anticipates a 27% increase in total revenue for fiscal 2024 year-over-year, with projected Q4 revenue between $82 million and $83 million.
In addition to financial growth, Twist Bioscience has announced an expansion in its DNA synthesis capabilities, now offering gene fragments up to 5.0 kilobases (kb) in length.
This development is expected to streamline research processes and is part of the company's broader strategy to provide tools for synthetic biology and genomics.
The company has also launched a Transaminase Enzyme Screening Kit in collaboration with bitBiome Inc. This product aims to provide a more environmentally friendly alternative for synthesizing chiral amines, key components in drug manufacturing.
Despite potential geopolitical headwinds affecting its BioSecure product, Twist Bioscience remains confident in its competitive edge and is expanding its market share in the Next-Generation Sequencing (NGS) domain. These are recent developments in Twist Bioscience's operations and strategic initiatives.
InvestingPro Insights
Twist Bioscience's (NASDAQ:TWST) recent performance in the market has caught the attention of analysts and investors alike. With a significant 15.3% return over the last week, the stock has demonstrated notable volatility, which could be an important consideration for potential investors. The company's market capitalization currently stands at approximately $2.73 billion, reflecting its position within the biotechnology sector.
InvestingPro data reveals that Twist Bioscience is trading at a high Price / Book multiple of 5.55 as of the last twelve months leading up to Q3 2024. This metric, coupled with the fact that the company is not expected to be profitable this year, may influence investment decisions. However, it's worth noting that the company has managed a substantial revenue growth of 25.37% over the same period, which could suggest underlying business strength.
For those interested in further analysis, there are additional InvestingPro Tips available for Twist Bioscience, offering deeper insights into the company's financial health and market performance. To explore these further, interested parties can visit InvestingPro's dedicated page for Twist Bioscience at https://www.investing.com/pro/TWST.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.