Ginkgo Bioworks Holdings: Balancing Growth and Uncertainty with a Hold Rating

Tejas Savant, an analyst from Morgan Stanley, maintained the Hold rating on Ginkgo Bioworks Holdings (DNA – Research Report). The associated price target is $10.00.

Tejas Savant’s rating is based on a combination of factors affecting Ginkgo Bioworks Holdings. The company experienced a slight revenue miss in the fourth quarter, primarily due to lower-than-expected performance in its Biosecurity segment. Despite this, there was notable growth in the Cell Engineering division, driven by new biopharma deals, which helped offset some of the shortfall. However, the overall uncertainty in the biotech market and government funding challenges have clouded the company’s visibility for 2025.
Additionally, while the company has made significant progress in restructuring and cost-saving initiatives, achieving a target of $250 million in savings by September, the execution against challenging macroeconomic conditions remains crucial. The potential for upside exists in their Tools, Datapoints, and Ginkgo Automation offerings, but conservative expectations have been set. These mixed factors have led Tejas Savant to maintain a Hold rating for the stock, reflecting a cautious stance given the current uncertainties.