Analyst Daniel Brennan from TD Cowen maintained a Hold rating on 10x Genomics (TXG – Research Report) and decreased the price target to $15.00 from $18.00.
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Daniel Brennan has given his Hold rating due to a combination of factors that include both cautious optimism and underlying risks. The company’s recent pre-announced fourth-quarter revenue exceeded expectations, which is a positive sign. However, the 2025 sales guidance between $610-630 million, reflecting only a slight year-over-year growth, suggests a conservative outlook. The uncertainty surrounding potential cuts to the NIH budget, which constitutes a significant portion of 10x Genomics’s sales, remains a concern.
Despite the company’s commercial reorganization nearing completion and the improvement in free cash flow, challenges such as pricing pressure and potential market share loss in single-cell consumables still pose risks. These factors lead to a balanced view, justifying the Hold rating as the company navigates these uncertainties while maintaining a reasonable valuation at approximately 2x EV/2025 sales.