William Blair analyst Matt Larew has maintained their neutral stance on TXG stock, giving a Hold rating yesterday.
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Matt Larew has given his Hold rating due to a combination of factors impacting 10x Genomics. The company is facing significant challenges due to its heavy reliance on U.S. academic and government research funding, which constitutes a substantial portion of its revenue. The ongoing uncertainty in research funding, exacerbated by delays and potential budget cuts, has created a difficult environment for forecasting, leading management to withdraw its full-year guidance.
Despite these challenges, 10x Genomics is taking steps to mitigate costs, including a reduction in workforce, which is expected to alleviate some pressure on margins. While there are positive trends in new product growth, such as the increase in Chromium reactions, the uncertainties in key markets, particularly in China, pose risks. The current valuation reflects these near-term uncertainties balanced against the company’s long-term potential, justifying the Hold rating.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TXG in relation to earlier this year.