PacBio downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Matthew Sykes downgraded PacBio to Neutral from Buy with a price target of $2.50, down from $7, following the preliminary Q1 results. The company expected flat to slightly down Revio system shipments in Q1 versus Q4, but reported 28 shipments in Q1 compared to 44 in Q4, the analyst tells investors in a research note. The firm says it underestimated the impact of capital equipment demand weakness on Revio placements, as both biotech funding weakness and academic funding uncertainty have resulted in hesitancy to invest in new instruments. It now views PacBio as being “incrementally more sensitive” to the capital equipment downturn.