Twist Bioscience (TWST – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Rachel Vatnsdal from J.P. Morgan maintained a Sell rating on the stock and has a $33.00 price target.
Rachel Vatnsdal’s rating is based on a combination of factors that highlight potential risks for Twist Bioscience. Despite the company’s recent performance exceeding expectations in terms of revenue and gross margins, Vatnsdal remains cautious due to the challenging macroeconomic environment affecting the life science tools and diagnostics sector. The decision to spin off the DNA data storage business is seen as a positive step, but the overall risk-reward profile is considered unfavorable compared to other investment opportunities.
Additionally, while Twist Bioscience has shown strong growth in its core segments, such as next-generation sequencing and synthetic biology, the premium valuation of its stock relative to peers raises concerns. The company’s ambitious growth targets and the need to achieve EBITDA breakeven by FY26 add further uncertainty. As a result, Vatnsdal maintains a Sell rating, with a price target of $33, reflecting a cautious outlook on the company’s ability to meet its financial goals amidst these challenges.
Vatnsdal covers the Healthcare sector, focusing on stocks such as Repligen, Guardant Health, and Adaptive Biotechnologies. According to TipRanks, Vatnsdal has an average return of -0.9% and a 38.46% success rate on recommended stocks.