Goldman Sachs analyst Matthew Sykes maintained a Sell rating on Ginkgo Bioworks Holdings (DNA – Research Report) yesterday and set a price target of $7.00.
Matthew Sykes has given his Sell rating due to a combination of factors including Ginkgo Bioworks Holdings’ financial performance and future outlook. The company’s revenue for the fourth quarter was in line with expectations, but its earnings per share fell short of consensus estimates. Additionally, the revenue guidance for fiscal year 2025 was set lower than previous estimates, indicating a potential decline in growth.
Moreover, Ginkgo Bioworks is facing challenges in the biotech R&D sector and has a significant reliance on government contracts, which adds uncertainty to its revenue streams. Although there are promising developments in new product offerings and cost reductions, Sykes remains cautious and seeks further validation of the company’s strategic shift before adopting a more optimistic stance on the stock.
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