Pacific Biosciences: Improving Fundamentals, Emerging Growth Catalysts Support Buy Rating and $3 Target

Kyle Mikson CFA, an analyst from Canaccord Genuity, maintained the Buy rating on Pacific Biosciences. The associated price target remains the same with $3.00.

Kyle Mikson CFA has given his Buy rating due to a combination of factors that point to an improving outlook for Pacific Biosciences. He highlights that preliminary fourth-quarter and full-year 2025 results exceeded both his projections and market expectations, with a notable rebound in instrument sales and record levels of consumables revenue, suggesting an operational turning point after a difficult year marked by funding and tariff headwinds. The company has also made tangible progress in cutting cash burn and reinforcing its balance sheet, exiting the quarter with a stronger cash position than anticipated.
Looking ahead, Mikson expects multiple catalysts to drive a return to sustainable double-digit growth in 2026, including the broader commercial rollout of new multi-use SMRT cells and SPRQ-Nx chemistry, which should reduce sequencing costs, broaden applications, and enhance PacBio’s competitive stance. His updated model reflects higher 2026 revenue, expanding gross margins, and disciplined operating expenses that are forecast to remain below 2025 levels. He further assumes attractive long-term revenue and margin trajectories in his DCF analysis, and concludes that the current share price does not adequately capture the company’s improving fundamentals or long-term growth potential, supporting his Buy recommendation and $3 price target.

Mikson CFA covers the Healthcare sector, focusing on stocks such as Illumina, Natera, and Guardant Health. According to TipRanks, Mikson CFA has an average return of 4.4% and a 39.43% success rate on recommended stocks.

In another report released on January 7, TD Cowen also maintained a Buy rating on the stock with a $3.00 price target.