2021 has been a stellar year for Bionano Genomics (BNGO). Shares of the life sciences instrumentation company went through the roof and appreciated significantly in value.
With a market capitalization of $1.75 billion, the share price of Bionano Genomics rocketed almost 1,237% in one year. (See Bionano Genomics stock chart on TipRanks)
Bionano leverages its Saphyr platform to provide tools and services that help conduct genetic research, streamline the study of changes in chromosomes, and accelerate the pace of identifying new diagnostics and therapeutic targets.
Bullish analyst remarks at the beginning of this year, growing adoption of its Saphyr systems, and the development of next-generation products aimed at reducing COGS (cost of goods sold) pushed Bionano stock higher.
Moreover, Bionano delivered strong Q1 performance, wherein its total revenue surged approximately 179% year-over-year to $3.2 million. Higher demand for its reagent rental program and consumables and growth in service and other revenues drove its top line. Bionano’s net loss narrowed to $9.9 million compared to $10.5 million in the prior-year period.
It is worth mentioning that Bionano shipped 11 Saphyr systems in Q1 compared to five in the prior-year period, while its installed base of Saphyr systems reached 107 at the end of the quarter. Management is targeting growing installed base to 150 Saphyr systems by the end of this year, representing an increase of 50% compared to 2020.
Adding to investors’ optimism, Bionano recently announced its inclusion in the Russell 2000 index, a popular index of small-cap stocks.
Bionano CEO Erik Holmlin said, “We are pleased Bionano has been added to the Russell indexes, which means Bionano’s share performance is now included in a leading benchmark for institutional investors. Inclusion in the Russell indexes enhances the visibility of our company as we continue to grow the installed base of Saphyr and potentially build the next great genomics company.”
While Bionano stock gained quite a lot this year, the bigger question is whether it has further room to run.
Analysts Weigh In
Oppenheimer analyst Kevin DeGeeter thinks so. DeGeeter recently met Bionano’s management and reiterated his Buy rating and a price target of $14 on the stock. This reflects a potential 12-18 month upside of 122.6% from the current levels. The analyst said, “Management is comfortable with current consensus 2021 revenue of $16.0M (Opco est. $15.6M).”
While Saphyr systems and cytogenetics are at the center of DeGeeter’s bull case, the growth opportunities stemming from Bionano’s next-generation optical mapping system support his optimism.
DeGeeter expects Bionano’s “next-generation optical mapping system to open up high-volume markets like prenatal testing and certain international markets (i.e., India) that may benefit from higher throughput.”
The 5-star analyst believes that Bionano’s launch of the next-generation platform in 2023 would reduce cost of goods sold (COGs) per genome by 80%. DeGeeter stated, “This reduction in COGs should offer a clear cost advantage compared to legacy technologies such as microarrays, support deeper penetration of cytogenetics market and potentially open up new market opportunities.”
On TipRanks, Bionano is a Strong Buy based on 4 unanimous Buys. The average Bionano price target of $11.50 implies approximately 82.8% upside potential to current levels.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
