BTIG analyst Mark Massaro has maintained their bearish stance on DNA stock, giving a Sell rating yesterday.
Mark Massaro’s rating is based on several factors that highlight concerns about Ginkgo Bioworks Holdings’ future performance. The company has provided a revenue forecast for 2025 that falls significantly below market expectations, indicating potential challenges in its growth trajectory. This conservative guidance reflects ongoing pressures in the end markets and the impact of a substantial workforce reduction, which could hinder operational capabilities.
Additionally, Ginkgo’s decision to stop reporting new cell program metrics suggests a shift in focus towards revenue-generating activities, yet this change raises questions about the company’s ability to drive near-term revenue growth. The reduction in potential future cash revenue from its downstream milestone pool further underscores these concerns. While Ginkgo has made efforts to reduce cash burn and aims for EBITDA breakeven by the end of 2026, the uncertainties surrounding its newer product offerings and reliance on government contracts add to the risk profile, justifying the Sell rating.
Massaro covers the Healthcare sector, focusing on stocks such as Zoetis, NeoGenomics, and GeneDx Holdings. According to TipRanks, Massaro has an average return of -6.7% and a 29.77% success rate on recommended stocks.
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