Biotechnology companies can either be a hit or a miss. If they have yet to commercialize their technology, investing in one can potentially reap lucrative rewards, especially if the company eventually announces successful widespread implementation of its products. In the case of BioNano Genomics, Inc. (BNGO), the path toward profit production is clear, and the company has been marching toward its target. (See BioNano Genomics stock charts on TipRanks)
Bullish on the stock is Jason McCarthy of Maxim Group, who explained that the company has been heavily investing in the development of its current and next generation Saphyr platform, and has been working toward expanding its brand awareness.
McCarthy assigned a Buy rating on the stock, and declared a price target of $10. This target suggests a possible 59.24% upside for anyone willing to wait out the 12-month projection timeline.
The five-star analyst added that net revenue for BNGO has been growing, an obvious sign of near-term success. He wrote that “with a strong balance sheet and a clinical and commercial plan in place, success is starting to be reflected in growing revenue, and we expect this trend to continue as management executes on its commercial strategy.”
After earnings were reported last week, investors learned that BioNano Genomics revenues are up 226% year-over-year. McCarthy mentioned that the company’s gross margin increased by 4% quarter-over-quarter.
The company is currently involved in several clinical studies in order to demonstrate the robustness of its premier platform. BNGO expects the next generation of the Saphyr to be ready for implementation around Q4 of FY21.
In regards to commercialization and marketing, the analyst was encouraged to write that in the most recent 2021 Annual Cancer Genomics Consortium, BioNano and the Saphyr platform had a significant presence. This is a sign that more widespread adoption of the product could be on the horizon.
On TipRanks, BNGO has an analyst rating consensus of Strong Buy, based on 4 Buy ratings. The average BioNano Genomics price target is $11.50, reflecting a possible 12-month upside of about 82.83%. These intraday trading numbers are accurate as of 10:04am EST Monday.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.