On Thursday, Twist Bioscience (NASDAQ:TWST) Corporation (NASDAQ:TWST) saw its stock price target increased by TD Cowen, with the firm setting a new target of $65.00, up from the previous $55.00, while reaffirming a Buy rating on the company's stock. The revision reflects the analyst's optimism about the company's future performance and growth potential.
The analyst highlighted Twist Bioscience as the firm's top small to mid-cap (Smidcap) pick for the year 2024. The company's stock has already seen significant growth this year, increasing by approximately 50%. Despite this surge, the firm believes there is still further upside, citing the company's prudent guidance and clear path to profitability.
Several factors contribute to the positive outlook for Twist Bioscience. Among them is the adoption of the company's Express Gene product, which generated $2.2 million in the second quarter. Moreover, the firm anticipates improvements in gross margins as the 'Factory of the Future' (FOTF) initiative gains traction.
The analyst also noted that Twist Bioscience's strategic positioning, particularly in the context of macroeconomic tensions between the United States and China, is currently undervalued in the market. This underappreciation, along with the raised price target, suggests confidence in the company's ability to navigate and capitalize on the current market environment.
In other recent news, Twist Bioscience Corporation has seen a substantial 25% increase in its Q2 revenue for the fiscal year 2024, reaching $75.3 million. This growth is primarily driven by the company's synthetic biology product line and Next-Generation Sequencing (NGS) segment, resulting in a gross margin exceeding expectations at 41%. The company anticipates a gross margin above 50% by the end of fiscal 2025. The quarter concluded with a solid $292 million in cash, cash equivalents, and short-term investments.
Furthermore, Barclays (LON:BARC) has maintained an Overweight rating on Twist Bioscience shares, identifying a potential opportunity for the company following government inquiries into a competitor's business operations. This development is seen as advantageous for U.S.-based synthetic DNA suppliers, potentially leading to market share gains.
Lastly, Twist Bioscience expects its total revenue for fiscal 2024 to be between $300 million and $304 million, with a gross margin of 41.5% to 42%. These recent developments reflect the company's ongoing financial performance and market strategies. Despite reporting a net loss of $45.5 million for the quarter, the company remains optimistic about its market position, particularly in the biopharma sector.
InvestingPro Insights
Following the upbeat assessment by TD Cowen, Twist Bioscience Corporation (NASDAQ:TWST) also presents some interesting figures and metrics that are worth considering. According to recent data, Twist Bioscience boasts a market capitalization of $3.05 billion, reflecting the high expectations investors have for this innovative company. The revenue growth remains robust, with a 21.79% increase over the last twelve months as of Q2 2024, demonstrating the company's expanding business operations.
Investors looking for a dynamic growth stock may be intrigued by Twist Bioscience's impressive 182.7% return over the past year, signaling strong investor confidence and market performance. Moreover, the company's stock price is trading near its 52-week high, at 95.4% of this peak value, which aligns with TD Cowen's positive outlook and raised price target.
Despite the lack of profitability in the near term, as analysts do not anticipate the company to be profitable this year, the InvestingPro Tips suggest that the company's liquid assets exceed its short-term obligations and operates with a moderate level of debt, providing some financial stability amidst its growth trajectory.
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