Pacific Biosciences’ Strategic Focus on Long-Read Sequencing and International Expansion Drives Growth Potential

Analyst Daniel Brennan of TD Cowen maintained a Buy rating on Pacific Biosciences (PACB – Research Report), retaining the price target of $3.00.

Daniel Brennan’s rating is based on Pacific Biosciences’ strategic focus on long-read sequencing technology and its efforts to mitigate challenges in the U.S. market by expanding internationally and into clinical applications. The company has made significant cost-saving decisions, such as halting investments in short-read sequencing, which allows it to concentrate resources on its long-read portfolio. This strategic pivot is expected to drive growth, particularly in the European and clinical markets.
Additionally, Pacific Biosciences has demonstrated strong financial management by achieving higher-than-expected gross margins and maintaining a solid cash position. The company’s management has reiterated its confidence in reaching positive free cash flow by the end of 2027, supported by ongoing operational efficiencies and market expansion. Despite some challenges in the U.S. market, the company’s progress in international markets and clinical sectors presents a promising opportunity for patient investors.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PACB in relation to earlier this year.