TD Cowen analyst Brendan Smith maintained a Buy rating on Ginkgo Bioworks Holdings (DNA – Research Report) yesterday and set a price target of $12.00.
Brendan Smith has given his Buy rating due to a combination of factors influencing Ginkgo Bioworks Holdings. Despite a reduction in the price target from $16 to $12, Smith sees potential for growth driven by the company’s newer Tools and AI offerings, which could provide significant upside. The management’s focus on cost-cutting, with a target of $250 million in savings by the third quarter of 2025, also contributes to a positive outlook.
Furthermore, while the company faces uncertainties in its biosecurity and government cell engineering segments, particularly due to political factors and government contract exposure, Smith believes that Ginkgo is well-positioned to capture market share as these issues stabilize. The conservative guidance for fiscal year 2025 reflects these uncertainties, but the potential for revenue growth remains, especially with the acceleration in their Tools offerings and AI/data-driven portfolio. Overall, Smith’s Buy rating reflects a belief in the company’s strategic initiatives and potential for future growth.
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