Sell Rating for Ginkgo Bioworks Due to CFO Resignation, Market Challenges, and Revenue Concerns

Ginkgo Bioworks Holdings (DNA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Mark Massaro from BTIG reiterated a Sell rating on the stock and has a $6.00 price target.

Mark Massaro has given his Sell rating due to a combination of factors impacting Ginkgo Bioworks Holdings. One of the primary concerns is the recent resignation of the CFO, which, although not unexpected, adds to the ongoing personnel changes within the company. This change comes amidst a challenging capital market environment, where Ginkgo has been working to streamline operations and reduce spending significantly. Despite these efforts, the company still reported a substantial adjusted EBITDA loss in the first quarter of 2025, and while there is an expectation to break even by the end of 2026, achieving this target remains uncertain.
Additionally, Massaro points out the broader hesitancy within the life sciences sector, particularly concerning outsourcing, which could impact Ginkgo’s revenue streams. The transition year of 2025 sees the company shifting from industrial biotech programs to newer tools programs, which may not generate as much revenue per program. These factors, combined with a valuation based on a discounted revenue estimate, underpin the Sell rating, as the stock’s potential upside appears limited given the current circumstances.