PacBio price target lowered to $2.50 from $9 at Bernstein

Bernstein lowered the firm’s price target on PacBio to $2.50 from $9 and keeps an Outperform rating on the shares following the “weak” Q1 preannouncement. The firm says the number one question it is getting from investors is: Is PacBio the next NanoString Technologies (NSTG), in essence will the company go bankrupt? While Bernstein thinks the next twelve months will continue to be very challenging for PacBio, it reiterates an Outperform rating after pressure testing the company’s prospects. While a delay in achieving positive cash flow “could be dangerous for the stock,” becoming cash flow positive in 2027 is crucial for the company to avoid entering a refinancing negotiation in a very weak position, the analyst tells investors in a research note. Bernstein believes this is possible.