Analyst Michael Ryskin from Bank of America Securities reiterated a Hold rating on 10x Genomics (TXG – Research Report) and keeping the price target at $12.00.
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Michael Ryskin’s rating is based on several factors, including the recent performance and future outlook of 10x Genomics. The company’s first-quarter results exceeded expectations, largely due to a settlement with Vizgen that boosted royalty revenues. However, the core business performance was in line with forecasts, and there were regional variations, with the Americas and EMEA experiencing declines while APAC showed growth.
Despite the positive first-quarter results, the company has suspended its FY25 guidance due to limited visibility, particularly in the US academic and government sectors, which account for a significant portion of sales. This uncertainty, combined with potential budget cuts affecting customer spending, has led to a cautious outlook. While management remains confident in the second-quarter forecast, ongoing macroeconomic challenges and cost-cutting measures contribute to the Hold rating, reflecting a balanced view of potential risks and opportunities.
Ryskin covers the Healthcare sector, focusing on stocks such as Illumina, Bruker, and Danaher. According to TipRanks, Ryskin has an average return of -0.4% and a 45.68% success rate on recommended stocks.