Analyst Jason McCarthy of Maxim Group reiterated a Buy rating on BioNano Genomics, retaining the price target of $8.00.
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Jason McCarthy has given his Buy rating due to a combination of factors, including BioNano Genomics’ strategic shift towards increasing the utilization of consumables and software, which has shown promising growth. The company reported a significant increase in gross margins, rising to 52% from 33%, which indicates a successful focus on enhancing usage among routine users. This strategic move is seen as a more sustainable and scalable business model, with consumables units sold increasing by 17% year-over-year and revenue from consumables and software rising by 16%.
Additionally, BioNano Genomics has reiterated its full-year revenue guidance, reflecting confidence in its growth trajectory. The company is also enhancing its software capabilities, with new versions of VIA and Solve being rolled out to improve the utility and ease-of-use for optical genome mapping. These developments, along with a record number of new publications supporting the technology, are key to scaling utilization and underpin McCarthy’s positive outlook on the stock.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $11.00 price target.
BNGO’s price has also changed dramatically for the past six months – from $5.730 to $3.150, which is a -45.03% drop .