Daniel Brennan, an analyst from TD Cowen, maintained the Hold rating on 10x Genomics. The associated price target was raised to $15.00.
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Daniel Brennan has given his Hold rating due to a combination of factors influencing 10x Genomics’ current performance and future outlook. The company’s third-quarter revenue exceeded expectations, with a 4% beat over consensus, and the fourth-quarter guidance also came in ahead of forecasts. However, despite these positive developments, the year-over-year growth is still showing a decline, and there are ongoing challenges in the U.S. academic and government (A&G) sectors that could impact future performance.
While 10x Genomics has demonstrated resilience in a challenging market environment, with strong growth in single-cell consumables and new product launches, the overall trends remain weak. The valuation at 2x EV/Sales and a solid balance sheet are positive aspects, but the persistent weakness in the U.S. A&G demand and increasing competitive risks warrant a cautious approach. Consequently, while the investment thesis has attractive elements, the decision to maintain a Hold rating reflects these underlying uncertainties.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $14.00 price target.