Limited Visibility and Questionable Revenue Quality Underscore Sell Rating on Ginkgo Bioworks

William Blair analyst Matt Larew has reiterated their bearish stance on DNA stock, giving a Sell rating today.

Matt Larew has given his Sell rating due to a combination of factors tied to Ginkgo Bioworks’s recent performance and outlook. The company reported a quarterly revenue decline of nearly one-quarter year-over-year, missing both his and the Street’s forecasts, with Biosecurity notably underperforming and generating negative gross margins, which raises concern about the quality and durability of current revenue streams.

At the same time, management declined to issue revenue guidance for 2026 and only framed expectations in terms of projected cash burn, leaving investors with limited visibility into future growth despite an ongoing pivot toward AI-driven Cell Engineering and the planned Biosecurity divestiture. While Larew acknowledges improving EBITDA losses and views the strategic refocus as directionally positive, he sees insufficient evidence that these initiatives will translate into concrete financial results, especially given that the shares already trade in line with peers on his 2026 revenue target, limiting upside and supporting a Sell stance.

According to TipRanks, Larew is an analyst with an average return of -4.5% and a 44.57% success rate. Larew covers the Healthcare sector, focusing on stocks such as Waters, AptarGroup, and Danaher.

In another report released today, TipRanks – Anthropic also downgraded the stock to a Sell with a $9.00 price target.