Ginkgo Bioworks Holdings: Strong Q1 Performance and Strategic Focus on AI and Biosecurity Drive Buy Rating

In a report released today, Brendan Smith from TD Cowen maintained a Buy rating on Ginkgo Bioworks Holdings (DNA – Research Report), with a price target of $12.00.

Brendan Smith has given his Buy rating due to a combination of factors including Ginkgo Bioworks Holdings’ strong performance in the first quarter, which saw a notable revenue beat driven by $7 million in non-cash deferred revenue and significant growth in cell engineering revenues. The company has demonstrated resilience and adaptability in a challenging macroeconomic environment, securing $10 million in biosecurity revenues and maintaining a substantial backlog of government contracts.
Furthermore, Ginkgo Bioworks has made significant progress towards its cost-saving goals, achieving 82% of its $250 million target, and is on track for adjusted EBITDA breakeven. The company’s strategic focus on AI and automation in its Tools portfolio, along with anticipated new dataset releases, positions it well for future growth. Management’s updated FY25 guidance reflects optimism about potential revenue upside, driven by advancements in their Tools and AI offerings and expanded biosecurity opportunities.